Cryptocurrency lender Nexo has acquired a stake in the U.S. federally chartered financial institution Summit National Bank, a subsidiary of Hulett Bancorp (DBA Mode Eleven), which was established in 1984 and regulated under the Office of the Comptroller of the Currency.
Nexo to Offer Crypto Services to U.S. Customers
The investment allows Nexo to expand its financial services across the United States, offering users a wide range of crypto offerings, including options to open accounts and receive asset-backed loans and card programs.
The Switzerland-based crypto lender will also provide escrow and custodial solutions to its retail and institutional customers through Summit National Bank to further bolster its presence in the region.
Kalin Metodiev, the co-founder and managing partner of Nexo, noted that the partnership marks a new landmark achievement for the crypto firm in its relentless effort to better serve its U.S. customers. He added that the alliance would give users access to its innovative products intertwined between traditional finance and the blockchain.
Nexo also plans to expand its commercial bank offerings through its recent stake acquisition, with plans to secure more bank licenses to enable it to extend its suite of products worldwide. The company currently has $4 billion in assets under management.
Summit National Bank to Become a Digital Bank
The deal seeks to strengthen both companies’ capabilities by helping Summit National Bank reinvent itself as a modern Fintech institution, offering digital asset services and creating a bridge between traditional financial services and the Web 3 ecosystem.
The bank plans to tap into the emerging economy by using Nexo’s range of products to serve its customers across the country.
“We are excited to partner 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 transforming 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 U.S. bank.
As a regulated financial institution, the deal was reviewed by the Office of the Comptroller of the Currency before choosing Nexo as the suitable company to work with Summit National Bank in its new line of business.
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