Deal positions LevelField to become the first FDIC-insured bank offering nationwide crypto services
Digital asset fintech LevelField Financial has taken a major step toward becoming a fully regulated crypto-friendly bank in the United States. The company announced that it has received conditional approval from the Illinois Department of Financial and Professional Regulation to acquire Chicago-based Burling Bank — a development that could reshape the landscape for digital asset banking.
The acquisition, once completed, would allow LevelField to operate an FDIC-insured institution capable of offering crypto-integrated services across all U.S. states and territories.
If finalized, LevelField would be the first FDIC-insured chartered bank to embed crypto services directly into its core banking operations.
The parties are still awaiting approval from the Federal Reserve Board, which must sign off before LevelField becomes a bank holding company. Final terms of the acquisition were not disclosed.
Burling Bank is a smaller commercial institution, holding roughly $196 million in net assets and around $158 million in customer deposits, based on Visbanking data. After the acquisition closes, Burling will be rebranded as LevelField Bank, offering 24/7 crypto-banking services such as Bitcoin-backed loans, digital asset trading, custody products, and Bitcoin-rewards payment cards.
CEO Gene A. Grant II said the approval underscores the company’s commitment to operating within established financial rules.
“Today’s approval is an important milestone for LevelField,” Grant noted.
“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.”
The move arrives at a time when the relationship between crypto firms and U.S. banks remains strained. Despite rising institutional adoption, banking groups continue to warn that yield-bearing stablecoins could drain deposits essential for funding loans and maintaining liquidity.
Those concerns were echoed in an April analysis by the U.S. Treasury Department, which estimated that widespread stablecoin usage could pull over $6.6 trillion from the traditional banking system.
Regulators remain cautious following the collapse of several crypto-exposed banks in early 2023, including Silvergate Bank and Signature Bank.
LevelField’s expansion highlights how the intersection of digital assets and traditional finance is entering a new phase — one that blends regulatory oversight with emerging market demand.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.