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September 28, 2022

Nexo buys stake in Summit National Bank to bolster US operations

Switzerland-based crypto firm Nexo has announced the acquisition of a stake in bank holding company Mode Eleven (the future name of Hulett Bancorp ), which owns federally chartered SUMMIT NATIONAL BANK

Nexo did not disclose the financial details of the transaction, which is expected to enhance the crypto firm’s US presence even further. 

Through Summit National Bank, Nexo will be able to offer its US retail and institutional clients services, such as bank accounts, asset-backed loans, and card programmes, besides escrow and custodial solutions. 

Nexo stated that Summit National Bank is overhauling itself and its offerings to cater to customers’ needs as a digital bank and the crypto firm is the bank’s preferred digital asset partner.

The partnership has been reviewed by the Office of the Comptroller of the Currency as part of the general overhaul plan, it added. 

Nexo co-founder, managing partner and CFA Kalin Metodiev said: “This investment marks another landmark in Nexo’s relentless drive to better serve our US customers in compliance with the constantly evolving regulatory landscape. 

“We care deeply about our customers and are thrilled that this development will grant them access to some of the most innovative products at the intersection of traditional finance and blockchain technology.”

Metodiev has joined Summit National Bank’s board. 

As part of its long-term plan, Nexo aims to expand its commercial banking capabilities via its partnership with the US bank and secure additional licences on a global scale. 

With more than 50 licenses and registrations across the globe, the firm caters to more than five million customers in over 200 jurisdictions, with $4bn in assets under management (AUM).

Mode Eleven chairman of the board, and president Forrest Gilman said: “We are excited to be partnering with Nexo as we combine Summit National Bank’s traditional strengths and values with our vision for the bank’s future. 

“Kalin’s active engagement on the Board strengthens our work on the transformation of the bank into a fully-fledged cutting-edge FinTech bank with access to new clients.”

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