Crypto lending platform Nexo reportedly revealed that a healthy performance in its balance sheet allowed it to offer liquidity in the current market turmoil, via purchasing the assets of struggling crypto entities. 

Specifically, Nexo reported issued an announcement revealing it is being consulted by the banking heavyweight Citigroup, regarding the most appropriate measure to finalize the acquisition of the assets of insolvent crypto companies, in a bid to enable investors to tap into blocked funds again.

Antoni Trenchev, co-founder and managing partner at Nexo, reportedly disclosed via a Bloomberg interview that the ongoing crypto downfall brings back memories of the Panic of 1907 – where high-profile Wall Street institutions had no other choice but to bail out other struggling firms.

“This reminds me, quite frankly, of the 1907 bank panic where JP Morgan was forced to step in with his own funds and then rally all those guys that were solvent to fix the situation.”

Via the blog post, Nexo reportedly spoke highly of its track record of operating a sustainable business model, which made no engagement in risky lending practices. Consequently, it now takes up a position of “unmatched stability,” giving it a unique foothold to step into the breach to help shore up struggling firms. 

“The crypto space is about to enter a phase of mass consolidation which has already begun with the remaining solvent players, like Nexo, expressing their readiness to acquire the assets of companies with solvency issues in order to supply immediate liquidity to their clients and relief to the entire industry.”

On June 13, Nexo was in preparation to purchase a few of Celsius’ outstanding loans, with news of the lending platform going through a major liquidity crisis surfacing. 

On the same day, Nexo (NEXO) experienced a decline of approximately 25%, plummeting down to a new yearly low of $0.61 per token as fears of major DeFi contagion spread throughout the market.