Crypto lending platform Nexo announced today that it is taking a stake in Wyoming-based Summit National Bank. By taking a stake in the US federally chartered bank, which is regulated by the Office of the Comptroller of the Currency, the Swiss company Nexo is expanding its footprint in the United States.
Nexo declined to disclose terms of the private agreement.
“We prefer not to focus on the size of the transaction, but rather on the mutually beneficial effects the acquisition of the stake will have on both companies and, more importantly, on their customers,” Nexo replied in an email. -email to Decrypt.
The announcement comes shortly after Nexo received a cease and desist notice for its interest product, which eight different state regulators have labeled an unregistered security.
Nexo co-founder and chief financial officer Kalin Metodiev, who will join Summit National Bank’s board of directors, called the move “another milestone in Nexo’s relentless drive to better serve our U.S. customers in line with the regulatory landscape in constant evolution”.
Adding access to Nexo’s suite of products, including a cryptocurrency exchange, lending and digital asset brokerage, will allow Summit customers to use products at the intersection of the traditional finance and blockchain technology.
Nexo says the deal will allow the company to offer bank accounts, asset-backed lending, card programs, and digital asset escrow and custody solutions to US retail and institutional customers.
“We are delighted to welcome Nexo on board,” Summit National Bank Chairman and Chairman Forrest Gilman said in a statement. “This is the culmination of more than two years of unwavering dedication to combining Summit National Bank’s traditional approach and values with our vision for the future of banking.”
Founded as Hulett National Bank in 1984, Summit National Bank initially focused on agricultural and real estate lending. However, with its partnership with Nexo, Summit National Bank is entering Web3.
In July, Nexo announced it would acquire 100% of rival platform Vauld after Vauld halted customer withdrawals, bolstering Nexo’s presence in Asia.
(Disclosure: Nexo is one of 22 strategic investors in Decrypt.)
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