Leading cryptocurrency lender Nexo has acquired a stake in Hulett Bancorp (DBA Mode Eleven) and its subsidiary federally chartered bank Summit National Bank, regulated under the US Office of the Comptroller of the Currency.
The deal will allow the crypto lender, which has around $4 billion in assets under management, to further scale its financial product offerings across the US crypto market and strengthen its foothold in the region.
Nexo to Offer Crypto Services to US Customers
Under the acquisition agreement, Nexo will offer retail and institutional customers in the US a broad range of services, including opening bank accounts, asset-backed loans, and card programs. The company will also provide users with escrow and custodial solutions through Summit National Bank infrastructure.
In return, the US chartered bank will leverage Nexo’s experience and position as one of the leading lenders in the crypto industry to bridge the gap between traditional finance and Web 3. The bank will benefit from Nexo’s complete suite of products and services to satisfy customers’ needs as it migrates to a modern financial institution.
The new collaboration aligns with the bank’s mission to reinvent itself and its offerings to join the emerging economy as a regulated financial institution in the United States.
Summit National Bank was established in 1984 with four branches in Montana and Idaho.
“We are excited to be partnering with Nexo as we combine Summit National Bank’s traditional strengths and values with our vision for the bank’s future. Kalin’s active engagement on the Board strengthens our work on the transformation of the bank into a fully-fledged cutting-edge FinTech bank with access to new clients,” said Forrest Gilman, Chairman of the Board and President of the Summit National Bank.
Nexo to Expand its Banking Capabilities
As part of the general overhaul plan to bring cryptocurrencies under federal oversight, the partnership between the US bank and Nexo was reviewed by the Office of the Comptroller of the Currency.
The collaboration seeks to enhance both firms’ capabilities and respective offerings. Nexo said it plans to expand its global commercial banking services through its alliance with the Summit National Bank and by obtaining more licenses from banks across the globe.