Digital asset lending platform Nexo has announced that it has acquired a stake. Summit National Bank.
The company currently owns unspecified shares in Hulett Bancorp, a holding company that owns federally chartered banks.
Nexo called the acquisition an “industry-changing deal.” This is to expand Nexo’s footprint in the US and strengthen its offerings.
Founded in 1984 as Hullet National Bank, Summit has a track record of complying with regulations imposed by the Office of the Comptroller of the Currency. The deal with Nexo came at a formative time for the bank. The institution has continued its quest to reimagine itself and its offerings as a modern fintech bank.
As part of the agreement, Nexo will provide US users with bank accounts, asset-backed loans, card programs, escrow and custody solutions. Nexo said both users would get enhanced legal protection while maintaining the same quality of service. From Summit National Bank’s lending and payment infrastructure.
Kalin Metodiev, co-founder and managing partner of Nexo, has been appointed to the board of directors as Summit National Bank expands into new areas of business.
“This investment is another landmark in Nexo’s relentless effort to better serve its U.S. customers in compliance with the ever-evolving regulatory environment,” he said in a company announcement. “We care deeply about our customers and are excited that this development will give us 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 is excited to combine Nexo’s vision for the future of banking with its traditional strengths and values. With his CEO of Nexo actively involved on the board, Summit will transform itself into a “full-fledged, cutting-edge fintech bank,” Gilman said. Gilman will remain head of Summit Bank following the acquisition due to his experience and his previous positions at UBS, Deutsche Bank and his Citibank being valued in his Nexo.
In addition to providing banking services to its users, Nexo plans to further expand its global commercial banking capabilities. The company plans to secure additional banking licenses around the world in addition to the 50+ licenses and registrations it currently holds.
