Nexo announces purchase of cryptocurrency platform Vauld

The head of the company, Antoni Trenchev, noted that the interest in the site was due to its popularity in India and Southeast Asia

05.07.2022 - 12:40

1608

2 min

What’s new? Representatives of cryptocurrency lender Nexo announced the purchase of the Vauld lending platform, which had previously frozen customer funds. The parties signed a preliminary term sheet with a plan to acquire up to 100 percent of the shares, The Block reports. According to the term sheet, Nexo is given a 60-day exclusive introductory period during which it will conduct due diligence on Vauld.

Information on The Block's website

Nexo's comments. Nexo co-founder Antoni Trenchev said the company could restructure or refinance Vauld, depending on how the due diligence goes. According to him, if Vauld has assets or investments staked for a longer period, Nexo could take them and provide liquidity instantly.

Trenchev explained that the interest in Vauld is due to “huge traction in India and Southeast Asia, which are important markets” for Nexo. He added:

“We have to view it in the overall context of if we step in, can we restructure the business so that it is functioning again, so that it is profitable within the Nexo umbrella, which as a company is profitable and whether we can accumulate that.”

Nexo had previously intended to buy the assets of the Celsius platform, which had also suspended customer withdrawals, but the offer was rejected.

What is known about Vauld? It is a digital asset platform founded in 2018 by Sanju Soni Kurian and Darshan Bathija in Singapore. Most of the project team is based in India. The platform provides trading, lending and credit functions. At its peak, Vauld had about $1 billion in assets under management.

What is known about Nexo? It is a blockchain-based platform that offers loans in fiat and stablecoins against cryptocurrencies such as BTC, ETH, LTC or XRP. In April 2022, the company teamed up with Mastercard to launch the world's first cryptocurrency-backed payment card.

Author: