Leading crypto lender Nexo has announced the acquisition of a stake in Hulett Bancorp (DBA Mode Eleven) and its federally authorized subsidiary bank Summit National Bank, which is governed by the United States Office of the Comptroller of the Currency.
According to the acquisition deal, Nexo will provide a variety of services, such as opening bank accounts, asset-backed loans, and card programs, to retail and institutional customers in the US. Additionally, the company will offer users custodial and escrow services via the network of Summit National Bank.
On the other hand, the US chartered bank will bridge the gap between traditional finance and Web3 by leveraging Nexo’s expertise and position as one of the top lenders in the crypto market. As the bank transitions to a modern financial institution, Nexo’s full range of products and services will help it to meet the expectations of its consumers.
Through the new partnership, the 1984-founded Summit National Bank hopes to redefine itself and its services to participate in the growing economy as a regulated financial institution in the region. Forrest Gilman, the bank’s chairman of the board and president, said:
“We are excited to partner with Nexo as we combine Summit National Bank’s traditional strengths and values with our vision for the bank’s future. Kalin’s active engagement on the Board strengthens our work on the transformation of the bank into a fully-fledged cutting-edge FinTech bank with access to new clients.”
Nexo resilient to the bear market
Despite volatile market conditions that exposed major competitors Celsius Network and BlockFi to liquidity crises, Nexo has demonstrated significant resistance. Through its partnership with the Summit National Bank and by getting new licenses from banks throughout the world, the crypto lender intends to increase the scope of its global commercial banking offerings.
The new acquisition deal comes at a time when eight US state regulators slammed Nexo with cease and desist order for its unregistered Earn Interest Product (EIP) account, as TheCoinRise reported.