What is Nexo? Nexo is a top cryptocurrency lender and blockchain-based financial company. It is getting consultation from Citigroup about acquisitions.
Nexo and Citibank Collaboration
According to a statement provided to CoinDesk, Nexo is collaborating with banking behemoth Citigroup (C) as the cryptocurrency lender pursues a consolidation of other lenders impacted by the recent market collapse. This occurs as Nexo recognizes the cryptocurrency crisis, which was made worse by the de-pegging of the UST stablecoin and the collapse of the Terra ecosystem.
The announcement comes a few weeks after a competing loan company called Celsius stopped allowing withdrawals, sparking insolvency rumors. According to the announcement, Nexo intends to significantly consolidate the cryptocurrency market through mergers and acquisitions (M&A). Co-founder and managing partner of Nexo, Antoni Trenchev, has stated that the company has been approached by several Wall Street banks and has decided to officially explore the potential for purchase – to help make its nascent business stable.
How Will this Turn Out?
The largest cryptocurrency hedge fund, Three Arrows Capital, has struggled to fulfill its obligations to several crypto lenders, according to the business. Thus, according to Nexo crypto, it is also in discussions with a number of other cryptocurrency businesses – in order to get assistance in creating a larger relief scheme for the blockchain industry.
According to Trenchev, the cryptocurrency industry is about to undergo mass consolidation, which is already in progress for the players who are still in business. To that aim, the business intends to provide liquidity assistance to others as needed.
In order to allow investors with blocked assets to receive their money as soon as possible, Nexo has stated that it intends to collaborate with Citibank on acquisition and liquidity restructuring projects.
Trenchev claims that this will go a long way toward rebuilding the faith of investors and customers in the system, and the solid financial position will allow Nexo to be committed to contributing to the system in some way, albeit it might be small in the beginning stages.
Nexo has recently been in the news for its intention to provide consumers with access to cryptocurrency-powered liquidity, for which the business has collaborated with the world’s largest payments provider Mastercard as well as the London-based eWallet DiPocket.
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