Nexo and Citigroup are in talks for strategic opportunities in crypto lending

Home » Nexo and Citigroup are in talks for strategic opportunities in crypto lending

Nexo has at this time introduced that it’s spearheading talks with Citigroup because it seeks consolidation of the crypto lending area. Citigroup is poised to take the function of a monetary advisor.

By way of this new relationship with Citigroup and the in depth experience of its funding arm, Nexo Ventures, Nexo has each the liquidity and the market know-how to steer a profitable consolidation within the crypto lending sector.

The crypto lending sector specifically has proved to be in dire want of liquidity amid the continued turbulence inside the crypto area. A variety of crypto lenders like Celsius have been confronted with the chance of insolvency as crypto costs nosedived over the previous few weeks.

For the reason that cryptocurrency trade has no central physique just like the Federal Reserve that acts as a final resort for monetary establishments on the threat of insolvency, mass consolidation of the crypto trade by mergers and acquisitions (M&A) turns into the best way of least resistance for the remaining solvent gamers.

Stability for corporations dealing with insolvency

Nexo has been doing a variety of acquisitions within the latest previous with the primary goal being to “instill stability within the corporations dealing with insolvency and, extra importantly, to guard retail and different buyers who would in any other case be most adversely affected by the failure of a number of crypto lenders” to refund their deposits when requested to take action.

In response to Nexo’s co-founder and Managing Accomplice, Antoni Trenchev:

“We now have been approached by a number of Wall Road banks and determined to formally discover the alternatives for acquisition to assist stabilize our nascent trade. At Nexo, we now have lengthy advocated for the implementation of prudent practices and sustainable enterprise fashions in our trade, on account of which the corporate has amassed a warfare chest of funds for use in such assist offers.”

Nexo has been searching for crypto companies which have been adversely affected by the latest crypto market circumstances and Citigroup may very well be a terrific companion, particularly as a fanatical advisor.

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