Last Updated on September 29, 2022 by Bitfinsider
Nexo, a digital asset lending platform, has purchased a stake in a holding company that owns a federally chartered bank in the United States, a move that Nexo claims will improve its ability to serve retail and institutional clients.
Nexo announced Tuesday that it had purchased a stake in Hulett Bancorp, a holding company that owns the federally chartered Summit National Bank, which is regulated by the Office of the Comptroller of the Currency. The terms of Nexo’s acquisition and its ownership stake in Hulett Bancorp were not disclosed.
Nexo and its customers will be able to open bank accounts with Summit National Bank as a result of the acquisition. Nexo’s retail and institutional clients in the United States will also have access to asset-backed loans, card products, and escrow and custodial services.
Nexo and its customers can now open bank accounts with Summit National Bank as a result of the acquisition. Nexo’s retail and institutional clients in the United States will now have access to Summit’s asset-backed loans, card products, and escrow and custodial solutions.
As part of the new business partnership, Nexo co-founder and managing partner Kalin Metodiev will join the Summit National Bank board of directors. Summit’s board chairman, Forrest Gilman, stated that Nexo will help the bank “transform into a fully-fledged fintech bank.”
Nexo has prioritized acquisitions to strengthen its position in the midst of the bear market. In June, the company hired Citibank to advise on how to acquire struggling crypto firms. Following the implosion of major lending platforms, the company predicted that the “crypto space is about to enter a phase of mass consolidation.”
Nexo has signaled its intention to expand its regulated crypto offerings and attract new users from traditional finance by acquiring a stake in Hulett Bancorp. This comes as several states have filed lawsuits against the cryptocurrency lender for allegedly failing to register its interest accounts.
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