Although regulatory oversight for international cryptocurrency selling and trading companies is still a matter of considerable dispute, there are significant barriers standing between such organizations and traditional financial services to U.S. customers. For the most part, a crypto fintech is not permitted to offer banking services without first securing a banking charter in the U.S., an expensive and lengthy process.
After the late September purchase of a stake in Hulett Bancorp by Swiss crypto lender Nexo, however, that obstacle now seems much less insurmountable for the company. As a consequence of this purchase, Nexo is now invested in Summit National Bank, a federally chartered bank that has opened the world of banking services to the crypto company.
Co-Founder of Nexo Antoni Trenchev is understandably optimistic about the opportunities presented by his company’s new investment. “The acquisition of a stake in a full-fledged bank enables us to offer our complete range of services to U.S. retail and institutional clients,” he said in a recent interview, “including bank accounts, asset-backed loans, card programs, as well as escrow and custodial solutions, and many other future plans for Nexo’s U.S. expansion that will be uncovered in the months to come.”