Nexo Offers Indicative Term Sheet for the Acquisition of Vauld
Jul 05, 2022•3 min read
LONDON, July 5, 2022 – Nexo, a leading digital assets institution, has signed an indicative term sheet with Vauld that grants Nexo a 60-day exclusive exploratory period related to its intended acquisition of Vauld, pending a satisfactory outcome of the initiated due diligence process. Upon successful completion of the transaction, Nexo plans to acquire up to 100% of Vauld and reorganize its future operations with the aim to accelerate its deeper presence in Asia.
The current market conditions are to a large degree reminiscent of the Bank Panic of 1907, characterized by excessive leverage in the system, an overabundance of companies in trouble, and no lender of last resort. Today, it is again in the hands of a few capable and well-capitalized entities to come up with systemic solutions and aid the sector. As one of the few companies in a position to help distressed industry participants, Nexo takes this responsibility with the utmost seriousness and has retained the advisory services of two major Wall Street banks to receive best-in-class advice on the several acquisitions and liquidity provision options currently underway.
As Tatiana Metodieva, CFA, Nexo’s Head of Corporate Finance & Investments, points out, “We sympathize with all affected by the drastic market downturn. However, difficult times always teach us the importance of business model viability and prudent risk management. It is inevitable that the industry leaders will navigate out of the current crisis on the foundation of competitive strength, discipline, and uncompromising responsibility to customers. Nexo welcomes a dialogue with investors in all of the prominent digital asset lending platforms on a new and sustainable way forward through its strategic contribution of bespoke corporate governance, improved revenue generation, and optimized operating cost structure.”
Nexo finds synergies with Vauld’s existing focus on Southeast Asia, an important and continuously growing market. While Nexo aims to provide immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform, greater plans for the future are already in the making. Nexo will concurrently explore the integration of a wider retail and institutional product range, strong liquidity, legal and regulatory expertise, unparalleled automation, risk management, and the best business practices that have fortified its firm stance despite the cascading collapse of multiple institutions in the sector. The aim is not only to protect Vauld’s existing customer base to the fullest extent possible but also to give them access to an improved range of services.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions,” Vauld’s Darshan Bathija said.
About Nexo
Nexo is a leading digital assets institution. Committed to enhancing the value and utility of digital assets, the company offers a comprehensive suite of services including advanced trading solutions, liquidity aggregation from top trading venues, and flexible asset-backed credit lines. In 2022, the enterprise launched its investment arm Nexo Ventures, which now boasts over 60 portfolio companies. Since its inception in 2018, Nexo has processed $130+ billion for 7,000,000+ satisfied users across more than 200 jurisdictions. For more details, visit: nexo.com.
About Vauld
Vauld is one of Asia’s largest crypto financial services companies and exchanges with a significant penetration in India. Vauld’s services includes interest accounts, crypto-backed loans, an exchange and products for customers to dollar cost average into cryptocurrencies. Vauld has raised capital from Valar Ventures, Pantera capital, Coinbase ventures, and CMT Digital. Vauld has over 800,000+ users across Asia.
Media Contact for Nexo:
The Nexo PR Team
Media Contact for Vauld:
The Vauld PR Team: