LevelField Wins Illinois Approval to Acquire Burling Bank and Advance FDIC-Backed Crypto Banking

Highlights:

• LevelField gains state approval and moves closer to full federal review as it plans a wider crypto banking expansion.
• LevelField is pushing for a secure model that blends banking and digital assets with the FDIC-backed crypto banking.
• Stablecoin concerns remain high as regulators assess the impact of new crypto services on deposits.

LevelField Financial said it secured conditional approval from Illinois regulators to acquire Chicago-based Burling Bank. The approval marked a major step in LevelField’s plan to build a regulated bank that offers both traditional and digital services. The company said the deal will allow it to rename the institution LevelField Bank once all remaining approvals arrive. It also confirmed that it still awaits the final decision from the Federal Reserve. That decision will determine if LevelField can operate as a full bank holding company.

🚨 BREAKING: LevelField secures conditional approval to acquire Chicago's Burling Bank in Illinois!

This could mark the first FDIC-insured bank offering integrated crypto services nationwide 🇺🇸

The convergence of traditional banking and crypto infrastructure is accelerating…

— PayAll (@PayAll_AI) November 18, 2025

Burling Bank remains a relatively small commercial bank. It holds about $196 million in net assets and roughly $158 million in deposits, according to Visbanking data. LevelField aims to use this base to introduce new digital services under full regulatory oversight. The company also plans to serve users in every US state and territory once the transition is complete. The aim is in line with the mission of the company to increase access to digital products in a secure banking system.

The acceptance also signifies a change in the general crypto market. The US regulators have been cautious of crypto-banking deals. That caution followed the failures of Silvergate, Silicon Valley Bank, and Signature Bank. Their collapse changed how regulators assess digital-asset exposure in the banking system. Meanwhile, the Office of the Comptroller of the Currency recently announced that US banks can start offering crypto custody and trade execution services to their customers.

Approval Positions LevelField Closer to FDIC-Backed Crypto Banking

The Illinois decision brings LevelField closer to building an FDIC-backed crypto banking model. LevelField wants to provide regulated digital-asset products within a protected banking structure. The firm said its banking framework will integrate crypto services into a single platform while maintaining compliance with federal rules. Gene A. Grant II, the company’s CEO, said the approval reflects strong progress toward this goal. He said the support from investors and partners helped the company reach this stage.

Market conditions highlight why this approval matters. US banking groups continue to warn about the impact of yield-bearing stablecoins on deposits. They fear that stablecoin growth could drain funds from the banking system. The US Treasury estimated in April that stablecoins could pull more than $6.6 trillion from banks. This concern has shaped how regulators evaluate digital-asset proposals. It also explains why many firms struggle to gain approval for crypto-linked banking plans.

Stablecoins pose a long-term risk to bank deposits, with the US Treasury warning up to $6.6 trillion could shift away from banks if yield were allowed, though this looks overstated under the GENIUS Act. Deposit outflows would have negative consequences for bank funding costs and… pic.twitter.com/D359wJwl6Q

— Bloomberg Intelligence (@BBGIntelligence) September 2, 2025

LevelField’s careful strategy may have influenced the state’s decision. The company withdrew its first application in early last year after seeking more time to refine its plan. It then resubmitted the application in December with stronger compliance work. That updated plan secured the state’s confidence. The company now needs the Federal Reserve to complete the review process.

LevelField Prepares 24/7 Digital Asset Services Under a Regulated Framework

LevelField plans to offer a wide range of digital-asset services once the deal closes. The company intends to roll out Bitcoin-backed loans and Bitcoin rewards cards. It also plans to provide trading and custody services through a unified platform. The bank wants to operate round-the-clock services to meet user demand. These plans build on LevelField’s strategy to support underbanked sectors and small businesses.

The company said that all products will follow US banking rules. This structure will offer users legal protection that many standalone crypto platforms do not provide. It also aims to close the gap between traditional banking and digital-asset adoption. The firm believes this gap limits market growth for many businesses. LevelField said it will also focus on secure access to digital assets within an insured environment. This goal remains central to its long-term strategy.