LevelField Secures Approval in Illinois to Acquire Burling Bank for Cryptocurrency Services

LevelField Financial has gained approval from the Illinois Department of Financial and Professional Regulation to acquire Burling Bank, which is based in Chicago. This acquisition aims to incorporate cryptocurrency services into a comprehensive banking model, as reported by Bloomberg.

Key Takeaways

Approval Secured: LevelField Financial has received state approval for the acquisition of Burling Bank.
Pending Federal Approval: The deal is awaiting Federal Reserve Board approval.
Community Banking Focus: LevelField intends to retain Burling's community banking services while integrating digital assets.
Job Growth: If completed, LevelField plans to hire around 100 additional employees.
Product Expansion: The new bank will offer traditional banking services alongside cryptocurrency options.

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However, the deal still requires approval from the Federal Reserve Board, with plans to finalize the transaction by the end of the year, contingent upon meeting all necessary conditions.

Regulatory Path and Deal Terms

LevelField's planned acquisition follows an earlier attempt made in early 2023, which was retracted after the failures of Silvergate and Signature banks. The company filed again in December 2024. Reports indicate that LevelField has committed to a payment of up to $70 million, as mentioned in its application to the Federal Reserve.

With state-level approval secured from Illinois, the proposed transaction now progresses to the Federal Reserve for further evaluation. LevelField is focused on maintaining Burling’s community banking operations while incorporating digital asset services within a regulated, full-service banking framework.

Once all necessary approvals and conditions are met, the parties expect to finalize the deal. Currently, both institutions employ approximately 20 people each, but LevelField anticipates hiring around 100 additional staff within the first year of operation post-acquisition.

Gene Grant II, the Chief Executive Officer, emphasized the company’s strategy of entering the regulated banking sector through acquisition rather than pursuing a specialized charter. He stated, “Financial services must be changed from the inside, and unlike other industries, outside disruptors barely move the needle.”

Products, Custody, and Customer Access

The newly combined institution is set to offer a variety of financial products, including deposit accounts and traditional loans, alongside services related to digital assets. Deposits made in fiat currency will continue to be insured by the Federal Deposit Insurance Corporation due to the state-regulated bank framework.

The application filed by LevelField also outlines provisions for custody of digital assets and credit offerings secured by cryptocurrencies like Bitcoin or Ethereum. Future plans include offering term loans and credit cards that are collateralized by crypto holdings. Additionally, the company is engaging with card networks to create cards that will provide rewards in Bitcoin or Ethereum.

Customers will have the opportunity to trade and hold digital assets through the bank's platform, aiming to integrate community banking with blockchain technology under a unified supervisory framework, pending the necessary approvals from the Federal Reserve and the completion of the acquisition.