LevelField Financial, a fintech company focused on digital assets, has received conditional regulatory approval to acquire Burling Bank, located in Chicago. This milestone could position LevelField as the first federally insured bank in the United States that offers integrated cryptocurrency banking services across all states and territories. Although the specifics of the acquisition have not been disclosed, the approval from the Illinois Department of Financial and Professional Regulation suggests that Burling Bank is on track to rebrand as LevelField Bank.
The intended rebranded bank aims to provide round-the-clock cryptocurrency banking services, including loans backed by Bitcoin, credit and debit cards with Bitcoin rewards, as well as digital asset trading and custody services.
Burling Bank is a small commercial bank with approximately $196 million in net assets and around $158 million in customer deposits.
Gene Grant II, CEO of LevelField, emphasized that this regulatory approval is a significant achievement for the company, allowing it to serve under-banked sectors while adhering to the security and oversight of the United States banking system.
“Today’s approval is an important milestone for LevelField. I am grateful to our investors and partners for backing the patient, disciplined work it took to meet the necessary supervisory standards that protect consumers and businesses and make the US the home of the world leading banking system.”
“La aprobación de hoy es un hito importante para LevelField. Estoy agradecido con nuestros inversionistas y socios por respaldar el trabajo paciente y disciplinado que tomó cumplir con los estándares de supervisión necesarios que protegen a los consumidores y empresas y hacen de EE. UU. el hogar del sistema bancario líder mundial.”
This acquisition also enhances the relationship between the cryptocurrency and banking industries in the US, which have faced friction despite a rise in institutional adoption. Concerns have arisen among bank representatives that the increasing usage of yield-bearing stablecoins could result in substantial deposit outflows from the traditional banking system.
The US Treasury Department has echoed these concerns, predicting that widespread adoption of stablecoins could lead to over $6.6 trillion exiting the traditional banking system, significantly affecting its ability to fund loans and offer competitive savings products.
