Key Developments
LevelField Financial Inc., a U.S. financial services firm, has announced that it has received conditional approval from the Illinois Department of Financial and Professional Regulation (IDFPR) to acquire Chicago-based Burling Bank.
This approval marks a significant step towards establishing a full-service, FDIC-insured bank that will integrate traditional banking services with cryptocurrency offerings, pending final approval from the Federal Reserve.
Integrating Traditional and Digital Asset Banking
Following the completion of the acquisition, the acquired bank will be rebranded as LevelField Bank. This new entity is set to provide a comprehensive suite of services, including savings and checking accounts, loans, and credit cards. A notable feature will be the ability for these services to be secured by digital currencies such as Bitcoin (BTC) and Ethereum (ETH).
Customers of LevelField Bank will gain the capability to trade and hold cryptocurrencies directly through the bank's platform. The bank aims to serve a broad clientele, encompassing both individual consumers and businesses, with a particular focus on sectors that have historically faced challenges with traditional banking access.
LevelField is reportedly in discussions with major card networks to introduce credit and debit cards that offer rewards in Bitcoin or Ethereum. CEO Gene Grant II stated in the official announcement, "LevelField Bank was designed to meet the needs of the Bitcoin and digital asset community. We’re among the first full-service FDIC-insured banks to offer digital asset banking services."
Acquisition Details and Future Growth Strategy
Reports indicate that LevelField may invest up to $70 million to acquire Burling Bank. This acquisition attempt represents LevelField's second endeavor to purchase the bank; an initial proposal in early 2023 was withdrawn following the collapse of prominent crypto-friendly banks like Silvergate Capital and Signature Bank.
Efforts to acquire Burling Bank were renewed in December 2024, influenced by evolving regulatory and political landscapes that have become more favorable to digital assets. Both LevelField and Burling Bank currently employ approximately 20 individuals.
Should the deal proceed, LevelField Bank has plans to significantly expand its workforce, aiming to hire around 100 additional employees within the first year of operation. The firm has secured legal counsel from Hunton Andrews Kurth LLP and financial advisory services from 3V Capital Partners.
LevelField Bank intends to build upon Burling Bank's established community banking foundation by incorporating advanced cryptocurrency services. The bank is committed to offering enhanced accessibility, including 24/7 access and real-time payment capabilities.
Significance of the Merger
This impending acquisition reflects a growing trend towards the regulated integration of traditional banking systems and the cryptocurrency sector. The conditional approval from the IDFPR is a crucial milestone in LevelField's strategy to bridge these two domains.
Upon finalization, LevelField Bank is expected to provide U.S. customers with a more secure and insured banking environment, coupled with innovative products and services tailored for cryptocurrency users.