Kalin Metodiev stated, “This investment marks another landmark in Nexo’s relentless drive to better serve our US customers in compliance with the constantly evolving regulatory landscape.”
Nexo purchased a stake in Hulett Bancorp, a holding firm that owns Summit National Bank, with Nexo’s Co-Founder and Managing Partner Kalin Metodiev being appointed a board member of the bank.
The announcement came a day after regulators from eight U.S. states sued Nexo for failing to register its high-yield product.
According to its blog post, the lending firm acquired a stake in Hulett Bancorp and its subsidiary, Summit National Bank. The post stated that Summit seeks to turn itself into a modern FinTech bank. Nexo will assist the bank by serving as its go-to assets provider.
Summit National Bank’s Chairman of Board and President, Forrest Gilman, claimed,
"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."
The Summit National Bank holds a federal bank charter with the OCC. Nexo purchased the stake for an undisclosed sum, and the deal reportedly took two years to finalize.
Calling it an “industry-changing transaction,” Nexo states this acquisition will allow both parties to improve their offerings.
The deal will enable Nexo to offer a variety of services to its clients. These include asset-backed loans, bank accounts, escrow solutions, and so on. It will also ease Nexo's expansion into the U.S. market and bridge the gap between Web3 and traditional finance.
Forrest Gilman added,
“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.”
