Nexo 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.

As FX News Group has reported, Vauld has suspended deposits and withdrawals. The company admitted it is facing financial challenges despite its best efforts. Vauld blamed its decision on volatile market conditions, the financial difficulties of key business partners.

Tatiana Metodieva, CFA, Nexo’s Head of Corporate Finance & Investments, commented:

“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.”

Nexо finds synergies with Vauld’s existing focus on Southeast Asia, an important and continuously growing market for the former’s flagship financial services. 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.