Crypto lender Nexo acquires stake in US bank

• Nexo has reportedly acquired a stake in Hulett Bancorp (DBA Mode Eleven), the bank that owns Summit National Bank.
• The agreement with a US federally chartered bank gives Nexo the opportunity to further serve its US customers in a regulated environment.

Nexo, a leading regulated digital asset platform managing over $4 billion in assets, has announced an industry-changing transaction to acquire a stake in a regulated US bank.

The cryptocurrency lender revealed the deal on Tuesday, pointing out in a press release sent to coin journal Hulett Bancorp (DBA Mode Eleven) has announced that it has invested in Summit National Bank, the federally licensed arm of Hulett Bancorp (DBA Mode Eleven).

The transaction will make Nexo a Preferred Digital Asset Partner for Summit and part of Nexo’s growing footprint in the US market.

With this, the cryptocurrency exchange and lender is serving both individual and institutional customers, including bank accounts, asset-backed loans, custodial solutions and card programs, Nexo said in a release. .

Nexo Expands as More Compliance Needs

The acquisition announcement comes a day after multiple U.S. states filed enforcement actions against Nexo, alleging the platform offered lucrative account products without the required registration approval.

New York Attorney General Letitia James Said She was suing the crypto company for failing to register and lying to investors about this.

Given that Nexo has received a moratorium from U.S. state regulators to end yield products, today’s announcement that Nexo has acquired a stake in a local U.S. bank is a stepping stone to Nexo’s growing regulatory challenges. may suggest some sort of correspondence between

As CoinJournal reported yesterday, regulators in eight states have filed lawsuits against crypto companies.

In fact, Nexo co-founder and managing partner Kalin Metodiev alluded to this evolving regulatory environment in a statement, saying:

“This investment is another landmark in Nexo’s relentless efforts to better serve its US customers in compliance with the ever-evolving regulatory environment.

Metdiev, who recently joined Summit National Bank’s board of directors as a member, added:

We care deeply about our customers and are excited that this development will give us access to some of the most innovative products at the intersection of traditional finance and blockchain technology.

In a press release, Nexo said the transaction will allow its customers to benefit from the highest quality of service while enjoying the appropriate legal protections available through its banking partners’ federally regulated lending and payments infrastructure. says it can.

Nexo also has long-term ambitions to ensure the global expansion of its banking capabilities, including through partnerships with Summit National Bank and additional banking licenses in other jurisdictions.