Crypto lender Nexo in talks to invest in or buy more companies in Asia

Major crypto lender Nexo is in talks to invest in or acquire several companies in Asia, Tatiana Metodieva, the company’s head of corporate finance and investments, tells Tech in Asia.

These companies range from distressed ones and those facing difficulties for various reasons to businesses that are “in good standing,” she adds.

The potential deals are aimed at either expanding Nexo’s footprint in Asia or allowing the lender to move into new verticals within crypto. Asia forms 20% of the company’s user base of 5 million, who mostly come from Southeast Asia.

Tatiana Metodieva (left), Nexo’s head of corporate finance and investments / Image credit: Nexo

Headquartered in London, Nexo is in advanced discussions to buy troubled Singapore crypto platform Vauld, which reportedly owes US$402 million to lenders.

Metodieva says that Nexo has never faced liquidity issues and is “well-capitalized and well-positoned to consolidate the crypto lending space.”

Unlike embattled competitors Celsius and BlockFi, Nexo focuses on “safer” over-collateralized loans, which means borrowers pledge a larger amount of funds than what they’re taking out.

Asia is home to a fair share of struggling crypto lenders like Zipmex and Hodlnaut.

See also: UST, lies, and Hodlnaut: How a rising star fell back to earth

Referring to no firm in particular, Metodieva says Nexo can help “restructure the operations of the distressed companies” to bring them back on track. It can also assist in mitigating liquidity issues and bank runs.

The lender, which has over 650 employees, also has a VC arm called Nexo Ventures. The unit has committed US$150 million of Nexo’s money to minority investments in startups.

On the regulatory front, co-founder Kalin Metodiev says Nexo was caught off-guard when eight US state regulators acted against it over unauthorized product offerings.

“We were a little surprised by this news being thrown out there in public, you know, because this isn’t a process that just started this week,” he told Cointelegraph, adding that the firm is engaging regulators like the US Security and Exchange Commission.

On a related note, Nexo has bought a stake in a holding firm that owns US-based Summit National Bank. This allows Nexo users to use the bank to open accounts, borrow money, and more.