After the failure of Celsius Network, Voyager Digital, and Vauld, rumors about lending platforms, in general, being under stress have been rife.
Nexo, which has $4 billion of assets under management (AUM), has become the latest target. On Tuesday, the company’s co-founders Antoni Trenchev and Kalin Metodiev publicly dismissed the rumors and revealed that they are planning an expansion into trading and wealth management.
Not Headed for Insolvency
Nexo co-founders dismissed the rumors of insolvency in a YouTube Q&A on Tuesday. Trenchev clarified that the company had exposure neither to Terra and Luna coins nor to Three Arrows Capital, media reports said.
During the program, Antoni Trenchev and Kalin Metodiev were asked by an anonymous user if Nexo could be the next Celsius Network or Voyager Digital. Both of these high-profile lending platforms filed for bankruptcy after the market meltdown earlier this year.
“Insolvency and bankruptcy are nowhere in Nexo’s reality…We work very hard … we deliver a very strong and sustainable future for our users for many years to come, enriched with a number of additional services and products through integration of technology and disruption of existing services,” Metodiev said.
Reveal Expansion plans
Nexo founders further revealed that they are planning to venture into crypto trading and traditional capital markets with wealth and asset management solutions. Earlier, Nexo expressed its interest in taking over qualified assets of Celsius and Singapore-headquartered distressed DeFi platform Vauld, which halted withdrawals in July.
Late last month, Nexo acquired a stake in Hulett Bancorp and its subsidiary Summit National Bank, a federally-chartered bank. It is supposed to help the company strengthen its foothold besides augmenting its financial product offerings in the US crypto market.
Regulators Red-Flag Nexo
Last month, Nexo was flagged by regulators of eight US states for offering interest-earning accounts without obtaining proper approvals. California, Kentucky, New York, Oklahoma, Maryland, South Carolina, Vermont, and Washington filed cease and desist orders.
During Tuesday’s Q&A program, Trenchev said the company is in talks with the regulators, and it will provide the information in due course.
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