Nexo said it has a 60-day exclusive due diligence period in which to decide whether it will buy up to 100% of Singapore-based Vauld.
Crypto lender Nexo signed a term sheet with Vauld that could result in Nexo buying 100% of the Singapore-based company.
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Pending due diligence, Nexo will acquire up to 100% of the troubled firm, it said in an emailed announcement Tuesday.
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Nexo aims to use the acquisition to accelerate its presence in Asia. Vauld is based in Singapore, with most of its team located in India.
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Vauld suspended all withdrawals, trading and deposits on its platform as it looks at restructuring options, CoinDesk reported on Monday. Last month, Vauld said it would lay off 30% of its staff.
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The struggling company is not the first to find itself in Nexo’s crosshairs as the market downturn and knock-on effects of Three Arrows Capital’s woes hit the industry. In June, Nexo expressed interest in buying some assets from rival Celsius after the lending platform said it was freezing withdrawals and transfers because of extreme market conditions.
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On June 23, CoinDesk reported that Nexo said it was working with banking giant Citigroup (C) as it pursues a consolidation of other crypto lenders hit by the recent market downturn.
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The agreement with Vauld was reported earlier by The Block.
This article was originally published on coindesk.com
