Nexo has immediately 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 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 particularly has proved to be in dire want of liquidity amid the continued turbulence throughout 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 business has no central physique much like the Federal Reserve that acts as a final resort for monetary establishments on the threat of insolvency, mass consolidation of the crypto business by mergers and acquisitions (M&A) turns into the best way of least resistance for the remaining solvent gamers.
Stability for firms going through insolvency
Nexo has been doing plenty of acquisitions within the current previous with the primary goal being to “instill stability in the companies facing insolvency and, more importantly, to protect retail and other investors who would otherwise be most adversely affected by the failure of multiple crypto lenders” to refund their deposits when requested to take action.
In accordance with Nexo’s co-founder and Managing Accomplice, Antoni Trenchev:
“We have been approached by multiple Wall Street banks and decided to officially explore the opportunities for acquisition to help stabilize our nascent industry. At Nexo, we have long advocated for the implementation of prudent practices and sustainable business models in our industry, as a result of which the company has amassed a war chest of funds to be used in such aid deals.”
Nexo has been searching for crypto companies which were adversely affected by the current crypto market circumstances and Citigroup might be an amazing accomplice, particularly as a fanatical advisor.
by way of Cointojournal