Nexo, a digital asset lending platform, has acquired a stake in a holding company that owns a federally chartered bank in the United States (US).
Interest in Hulett Bancorp
Nexo has reportedly acquired a stake in Hulett Bancorp, a holding company that owns the federally chartered Summit National Bank. It is regulated by the Office of the Comptroller of the Currency. The exact terms of the Nexo acquisition and ownership stake in Hulett Bancorp are unknown.
The acquisition will allow Nexo to offer its customers the option to open bank accounts at the Summit National Bank. Nexo’s US-based retail and institutional clients also have access to asset-back loans, card products, and escrow and custody solutions offered through Summit.
The Summit National Bank was founded in 1984 and now has financial institutions in 4 locations in Montano and Idaho.
Deal has been going on for 2 years
Nexo’s co-founder and managing partner, Kalin Metodiev, will join the Summit National Bank board as part of the new business relationship. Forrest Gilman, who chairs Summit’s board of directors, said Nexo will help transform the bank into “a full-fledged fintech bank.”
The deal has reportedly been going on for about 2 years and talks are said to have been held with several other institutions before selecting the National Bank of the Summit as a prudent investment and partner. The acquisition also opens up new fintech opportunities for Nexo as they continue to expand in the US. Finally, they said the following:
Nexo wants to reach new customers and expand its addressable market in the US through new fintech capabilities, such as the one we can develop with Summit National Bank. We will share more of our future plans for Nexo’s US expansion in the coming months.
