Gabrielle Cook
By acquiring a stake in the holding company that runs Summit National Bank, Nexo purchases intends to increase the range of financial products it offers in the United States.
The federally chartered bank in the United States is owned by a holding company that Nexo has purchased a stake in. Nexo claims this will enable it to better serve institutional and retail customers.
The federally chartered Summit National Bank is governed by the Office of the Currency Supervisor, and Nexo stated on Tuesday that it had acquired a share in Hulett Bancorp, a holding company that owns it. There was no information provided on the acquisition of Nexo and its ownership stake in Hulett Bancorp.
The acquisition enables Summit National Bank to accept bank accounts from Nexo and its clients. Retail and business users of Nexo in the US will also have access to the asset back loans, card products, and escrow and custody solutions provided by Summit.
Hulett National Bank, the predecessor to Summit National Bank, was initially incorporated in Wyoming in 1984. In Montana and Idaho, the financial institution has four sites.
As part of the new business partnership, Kalin Metodiev, managing partner of Nexo, will sit on the board of directors of Summit National Bank. Summit’s board chairman, Forrest Gilman, stated that Nexo will assist in converting the institution into a “full-fledged fintech bank.”
Tatiana Metodieva, Nexo’s head of corporate finance and investment, responded to Cointelegraph’s inquiry about the procedure for acquiring an ownership stake in Hulett Bancorp by saying that “the deal has been in place for nearly two years” and that her team is “in talks with many other companies.” before selecting Summit National Bank as a wise investment and partner.
In addition, Metodieva added that as Nexo grows in the US, the acquisition gives it new “fintech skills.”
To improve its position in the bear market, Nexo targeted acquisitions. According to Cointelegraph, the company consulted Citibank about how to buy struggling crypto firms in June. Following the development of significant lending platforms, the company stated at the time that it thought “the crypto industry is set to undergo a moment of mass consolidation.”
Nexo has made it clear that it intends to grow its regulated cryptocurrency business and draw new customers from traditional finance by purchasing a share in Hulett Bancorp. This occurs as a number of states file lawsuits against the cryptocurrency lender for allegedly failing to report their interest accounts.