Vauld, a Singapore-based crypto trading and lending platform, announced a suspension for withdrawals. A major crypto lender Nexo announced on Tuesday that it has signed an indicative term sheet (with Vauld) giving it a 60 day exploratory period to discuss the acquisition of the rival.

Vauld’s management stated Monday that it was stopping operations due to “financial difficulties” caused by ‘volatil market conditions. It also mentioned financial difficulties at its partners, and blamed the current market environment for the nearly $198 million in customer withdrawals within three weeks.

Nexo stated that the industry is now in need of ‘capable and well capitalized entities to help it’ in response to the latest sign of stress. If the due diligence process is successful, Nexo plans to purchase up to 100% Vauld, reorganize operations and expand its presence in Asia.

“We feel for all those affected by this market crash. However, we learn from difficult times the importance of having a viable business model and managing risk prudently. It is likely that industry leaders will overcome the current crisis,” stated Tatiana Metodieva (Nexo’s head for Corporate Finance and Investments).

Nexo stated that it would provide assistance immediately and remove withdrawal restrictions on Vauld’s platform. This was a statement that affected over 800,000. The lender is also planning for the future and exploring ways to offer Vauld’s customers a wider variety of institutional and retail products, as well as better services.

Darshan Bathija, Vauld’s CEO, was quoted as saying that “Operating under Nexo puts us immediately in a position to continue the execution our fiduciary obligations towards our customers and at same time execute upon both companies’ ambitious roadmaps regardless of market conditions.”

The crypto lending industry saw substantial growth over the last couple of years, but was negatively affected by recent market slumps and events such as the collapse UST stablecoin in May. U.S. lender Celsius stopped withdrawing funds in June, again citing market conditions. Voyager followed suit a few days later. Nexo also offered to purchase the assets of Celsius.