Nexo, a digital asset lending platform, announced that it has acquired a stake in Summit National Bank.

The company now owns an unspecified stake in Hulett Bancorp, the holding company that owns the federally chartered bank.

Nexo called the acquisition an “industry-changing transaction” as it will expand Nexo’s presence in the US and enhance its offering.

Founded in 1984 as Hullet National Bank, Summit has a strong track record of complying with regulations imposed by the Office of the Comptroller of the Currency. The deal with Nexo comes at a formative time for the bank: the institution has been on a quest to reinvent itself and its offerings as a modern fintech bank.

As part of the deal, Nexo will offer bank accounts, asset-backed loans, card programs, and escrow and custody solutions to its users in the US. The company said both users will maintain the same quality of service while getting better legal guarantees. of Summit National Bank’s lending and payment infrastructure.

Kalin Metodiev, co-founder and managing partner of Nexo, has been appointed to the board of Summit National Bank as it expands into a new line of business.

“The investment marks another milestone in Nexo’s relentless drive to better serve our US customers in accordance with the ever-evolving regulatory landscape,” he said in the company’s announcement. “We care deeply about our customers and are delighted that this development gives them access to some of the most innovative products at the intersection of traditional finance and blockchain technology.”

Forrest Gilman, President and Chairman of the Board of Summit National Bank, said the bank was excited to combine its traditional strengths and values ​​with Nexo’s vision for the bank’s future. Having Nexo’s CEO actively involved on the board will help transform Summit into a “full-blown, cutting-edge fintech bank,” Gilman said. Gilman will remain at the helm of Summit Bank after the acquisition, as Nexo values ​​his previous experience and positions at UBS, Deutsche Bank and Citibank.

In addition to offering banking services to its users, Nexo plans to further expand its global commercial banking capabilities. The company plans to obtain additional banking licenses around the world, adding to the more than 50 licenses and registrations it currently holds.

Posted In: USA, Adoption

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This post Nexo acquires a stake in Summit National Bank to expand its offering in the US.

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