Nexo Buys Stake in a US Regulated Bank
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An editor at Coincrop
29 Sept 2022 | 2 min read
n Tuesday 27th September, cryptocurrency lender Nexo announced that it has taken a stake in a federally regulated U.S. bank, which will allow the company to offer banking services to Americans as a licensed institution.
Nexo, based in Zug, Switzerland, revealed that it has reached an agreement to acquire a stake in Hulett Bancorp, which owns Summit National Bank. Nexo plans to offer checking accounts and crypto-backed loans through Summit National Bank, which holds a federal bank charter with the Office Comptroller of the Currency.
This shift is a major steppingstone for the crypto industry as it works to gain legitimacy with politicians and other key decision-makers. With more people investing in digital assets, support from governments could help fuels even more growth.
Nexo, with over $4 billion in assets under management, is one of the first crypto companies to have obtained a banking license. This is quite rare in the industry. Other fintech companies have only been able to obtain federal banking charters through mergers and acquisitions; examples include SoFi which offers crypto trading on its platform, as well as LendingClub.
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