Nexo is working with banking giant Citigroup (C) as it pursues a consolidation of other crypto lenders hit by the recent market downturn, according to an announcement shared with CoinDesk. The company also later announced the information in a blog post.
- The news comes weeks after rival lending platform Celsius Network halted customer withdrawals, spurring speculation of insolvency.
- “We have been approached by multiple Wall Street banks and decided to officially explore the opportunities for acquisition to help stabilize our nascent industry," said Antoni Trenchev, Nexo's co-founder and managing partner.
- The announcement states that Nexo is planning a mass consolidation of the crypto industry through mergers and acquisitions.
- On June 13, Nexo revealed that it was planning a buyout of Celsius, including assets “mostly or fully of collateralized loan receivables secured by corresponding collateral assets."
- Last week, Celsius appointed Citigroup to advise it on possible financing, following its decision to freeze withdrawals and transfers, according to a report by The Block.
- Nexo's native token, NEXO, was recently trading at $0.6855, down 3.7% over the past 24 hours, according to CoinGecko.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.