September 30, 2022

LONDON (Reuters) – Cryptocurrency lender Nexo said on Tuesday it plans to buy fellow lender Fuld, in the latest sign of consolidation in the cryptocurrency industry as prices plummet.

London-based Nexo said it would buy up to 100% of Fuld and “realign its future operations with the goal of accelerating its deeper presence in Asia”. It did not say when the deal would close.

Singapore-based Fuld said on Monday it had suspended withdrawals for more than 800,000 customers. Read more

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The statement said Nexo aims to “provide immediate assistance and ease the withdrawal restrictions imposed on the Fuld platform.”

Nexo hasn’t said how much it plans to pay for Fuld.

As the unregulated banks of the crypto world, cryptocurrency lenders take deposits from retail investors, offer deposits of up to 20%, and lend digital tokens to borrowers. Read more

Crypto lending has been booming over the past two years but has drifted in recent months after the crash of cryptocurrency prices and the crash of the TerraUSD token in May. Read more

US lender Celsius, which had more than $11 billion in assets, stopped allowing customers to withdraw and transfer in June, citing harsh market conditions. Another lender, Voyager, halted withdrawals last week. Read more

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(Reporting by Elizabeth Hocroft; Editing by Louise Heavens)

Our criteria: Thomson Reuters Trust Principles.

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