Nexo acquires stake in US chartered bank

By acquiring a stake in the holding company that owns Summit National Bank, Nexo plans to expand its financial product offering in the United States.

Digital asset lending platform Nexo has acquired a stake in a holding company that owns a federally chartered bank in the United States, a move that Nexo says will strengthen its ability to serve retail and institutional clients.

Nexo on Tuesday disclosed that it has acquired 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. Terms of Nexo's acquisition and its stake in Hulett Bancorp were not disclosed.

The acquisition gives Nexo and its customers the ability to open bank accounts with Summit National Bank. Nexo's US-based retail and institutional clients will also have access to asset-backed lending, card products, and deposit and deposit solutions offered by Summit.

Founded in 1984, Summit National Bank was originally incorporated in Wyoming as Hulett National Bank. The financial institution has four branches in Montana and Idaho.

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As part of this new business relationship, Nexo co-founder and managing partner Kalin Metodiev will serve on the board of directors of Summit National Bank. Forrest Gilman, who chairs Summit's board, said Nexo will help transform the bank "into a fully-fledged fintech bank".

Asked about the process of acquiring a stake in Hulett Bancorp, Tatiana Metodieva, Nexo's head of finance and investments, told Cointelegraph that "the deal lasted almost two years," adding that her team "conducted discussions with several other institutions before selecting Summit National Bank as a prudent bank...