Cryptocurrency lender Nexo has acquired a minority stake in Summit National Bank, a financial institution regulated by the Office of the Comptroller of the Currency (OCC).
The deal will enable Nexo to open bank accounts with Summit National Bank as well as enhancing its lending and card products, according to an announcement on Tuesday.
Nexo can now expand its presence in the U.S. while building out its crypto products within a federally regulated environment.
The news comes a day after seven U.S. states, including New York and California, brought legal action against Nexo for offering unregistered securities in the form of its yield-bearing account which pays interest for crypto deposits.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.