LevelField Financial, a fintech company focused on digital assets, has announced that it has received conditional approval from regulators to acquire Burling Bank, headquartered in Chicago, marking one of the most notable cryptocurrency bank acquisitions in recent months.
LevelField stated in a press release on Monday that this move could make it the first federally insured chartered bank (FDIC) to offer certain integrated cryptocurrency banking services in all states and territories of the United States. Details of the transaction were not disclosed.
The approval from the Illinois Department of Financial and Professional Regulation brings Burling Bank closer to rebranding as LevelField Bank. Both parties are still awaiting approval from the Federal Reserve Board to become a bank holding company.
The new brand, LevelField, will seek to provide year-round cryptocurrency banking services, including Bitcoin (BTC) loans, Bitcoin rewards credit and debit cards, as well as digital asset trading and custody services.
According to Visbanking data, Burling Bank is a relatively small commercial bank with net assets of approximately $196 million and customer deposits of about $158 million.
CEO Gene A. Grant II stated that LevelField will focus on serving businesses in underbanked areas while benefiting from the safety and regulatory oversight of the U.S. banking system.
This move also strengthens the connection between the cryptocurrency and banking industries in the U.S., although there are still frictions despite a recent increase in institutional adoption.
For example, U.S. banking groups have expressed concerns that the widespread use of interest-bearing stablecoins could siphon deposits from the banking system, which banks rely on to provide loans and offer competitive savings products.
These concerns were echoed by the U.S. Treasury, which estimated in April that the widespread adoption of stablecoins could lead to over $6.6 trillion in deposits flowing out of the traditional banking system.
The Federal Reserve has also taken a cautious stance on cryptocurrencies, especially since the bankruptcies or forced liquidations of crypto-friendly banks like Silvergate Bank, Silicon Valley Bank, and Signature Bank earlier in 2023.
Related: Digital Chamber launches State Network initiative to guide cryptocurrency policy across U.S. states
Original article: “Crypto Company LevelField Approved to Buy Chicago Bank Burling Bank”
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