Tuesday, October 4, 2022

Nexo Contracts Citibank as Guide on its Business Consolidation Plans

Crypto lending firm Nexo has contracted Citibank to advise it on its planned consolidation of troubled crypto firms amidst this turbulent market phase.

The crypto space is going into a likely stage of mass consolidation. This is a period where solvent institutions typically acquire insolvent institutions to provide succor to their clients and support the ecosystem at large.

Nexo believes this in this case, can help others with liquidity problems where it can. It also believes its financial strengths put it in a position to support and redeem trust in the system.

Citibank will advise Nexo on acquisitions and restructuring plans for the firms it is interested in. The plan is expected to allow investors with locked assets access their valuables in the shortest time possible.

The crypto lender offered to absolve Celsius of all of its loan in exchange for the latter’s customer database amongst other things. Celsius has earlier suspended withdrawals on its platform citing extreme market conditions.

Furthermore, Nexo is also working with other crypto firms to design a relief plan for those who may need it.

Nexo has been showing signs of business growth for quite some time now. The Swiss lender partnered with MasterCard to introduce its crypto credit card back in April. The card enable users to hold down their assets as collateral for goods and services rather than selling them.

How Has Nexo Managed to Stay Afloat?

With the crypto market in a bearish run and the resulting heat on crypto firms, Nexo has remained very resilient. Nexo operates a self-sustainable business model that relies on strict collateralization. The firm also has a network of insurance providers that provides protection for assets in its custody.

The firm uses a real-time audit for assets under its custody. This confirms why the company’s assets are more than its liabilities, proofing liquidity and assuring investors.

Nexo’s over 40 licenses across the globe are a testament to the crypto lender’s commitment to compliance with regulatory frameworks. It similarly encourages other projects to embrace this model which let the company function confidently even in a protracted market downturn.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
2,043FollowersFollow

Latest Articles

%d bloggers like this: