Digital asset lending platform Nexo has bought a stake in a holding company that owns a federally accredited bank in the United States — a move that Nexo said will enhance its ability to serve retail and institutional clients.
Nexo revealed Tuesday that it has acquired a stake in Hulett Bancorp, the holding company that owns the federally accredited Summit National Bank, which is regulated by the Office of the Comptroller of the Currency. The terms of Nexo’s acquisition and ownership stake in Hulett Bancorp were not disclosed.
The acquisition gives Nexo and its customers the ability to open bank accounts with Summit National Bank. US individual and institutional Nexo customers will have access to asset recovery loans, card products, and escrow and custodian solutions offered through Summit.
Summit National Bank was established in 1984, originally chartered in Wyoming as Hewlett National Bank. The financial institution has four locations throughout Montana and Idaho.
Major banks have spent years calling Bitcoin and cryptocurrencies a scam. But they now believe crypto is a “mature asset class” similar to the internet in the mid-1990s. CT . Business Editor hahahaha He has the scoop. https://t.co/RHgI3qlrNb
– Cointelegraph February 11, 2022
As part of the new working relationship, Kalin Mitodiev, co-founder and managing partner of Nexo, will serve on Summit National Bank’s board of directors. Forrest Gilman, who chairs Summit’s board, said Nexo will help transform the bank “into a full-fledged fintech bank.”
When asked about the process of acquiring an ownership stake in Hulett Bancorp, Tatiana Metodieva, Head of Corporate Finance and Investments at Nexo, told Cointelegraph that “the deal has been in the pipeline for nearly two years,” adding that her team “has been in talks with several other institutions. before choosing Summit National Bank as a wise investment partner.
Metodieva also explained that the acquisition gives Nexo “new capabilities in fintech” as it expands into the US:
“Nexo is looking to reach new customers and expand its controllable market in the US with new fintech capabilities like the one we have the ability to develop with Summit National Bank. We will reveal more of our future plans for Nexo’s US expansion in the coming months.”
Nexo has prioritized acquisitions as a way to consolidate its position amid a bear market. As Cointelegraph reported, the company hired Citibank in June to advise on how to acquire troubled crypto firms. At the time, the company said it believed “the crypto space is about to enter a phase of mass consolidation” following the collapse of major lending platforms.
Related: US Federal Reserve Vice Chairman Michael Barr prefers to take a hard line on cryptocurrency, while the acting head of the OCC is no friendlier
By acquiring a stake in Hulett Bancorp, Nexo has indicated that it wants to expand its regulated crypto offering and attract new users from traditional funding. This comes at a time when several countries have taken legal action against the cryptocurrency lender for allegedly failing to register their interest accounts.
from San Jose News Bulletin https://sjnewsbulletin.com/nexo-acquires-stake-in-us-leased-bank/
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