• LevelField inched closer to its goal of offering both traditional and crypto banking services following its acquisition of the FDIC-insured Burling Bank.
• The full-service bank plans to offer its clients cryptocurrency-related services alongside a host of traditional banking services.
• Financial terms of the deal have not been disclosed, though LevelField may become the first FDIC-insured bank to offer crypto services.
LevelField Aims to Offer Crypto Services
Banking startup LevelField is making progress towards becoming the first FDIC-insured institution to offer digital asset services, following its acquisition of Burling Bank. The full-service bank plans to offer both traditional and cryptocurrency-related services for their customers. Although this could potentially provide a safer way for investors to get involved in cryptocurrencies, it remains uninsured by the Federal Deposit Insurance Corporation (FDIC). The financial terms of the deal have not yet been disclosed, but are expected be finalized by the end of this year pending regulatory approval.
Burling Bank Senior Management Team
The senior management team at Burling Bank will remain with LevelField as part of the acquisition and join forces with their existing team in order to expand their business nationwide. This could potentially open up new opportunities for clients looking for more comprehensive banking solutions that encompass both traditional and cryptographic assets.
Crypto Growing Adoption by Traditional Finance Companies
Cryptocurrency’s growing adoption by traditional finance companies has been on an upward trajectory over recent years, with notable names like Bank of America, Goldman Sachs and USAA embracing digital assets in various ways. This move from LevelField indicates a potential trend towards further integration between crypto exchanges and conventional financial service providers in future years.
Potential Risks Involved
While FDIC insurance provides protection against losses up to $250,000 in case of a bank failure, investors should be aware that cryptocurrencies still remain an asset class that is currently uninsured by them or any other organization at present time. Therefore they should always exercise caution when investing in any form of digital asset due to their volatile nature and lack of protection against possible losses if things go wrong.
By acquiring Burling Bank, LevelField has taken a major step forward towards becoming one of first FDIC insured banks offering both traditional financial services as well as cryptocurrency related facilities – something that may become increasingly common over coming years given recent developments within the industry itself. Investors should however remember that these currencies remain largely unregulated at present time so they should always do their own research before diving into any kind of investment decision relating to them.