Old Glory, SPAC to merge and form crypto-focused company
Old Glory Bank in Elmore City, Okla., and Digital Asset Acquisition Corp., a special purpose acquisition company, have agreed to merge to form a crypto-focused financial institution.
The bank, created when a group tied to Ben Carson bought and rebranded First State Bank in 2023, and the SPAC plan to form OGB Financial, a Texas corporation that will apply to be listed on Nasdaq. The merger is expected to close in early in the second quarter.
Financial details were not disclosed.
The SPACy has $176 million in its trust account, and Old Glory’s pre-money valuation will be $250 million. The parties plan to arrange a PIPE or other proceeds of at least $50 million for closing.
“This transaction and the related listing on Nasdaq will provide the capital necessary for us to continue growing deposits,” Carson, a bank director, said in a press release.
Old Glory had been working on a next-gen banking stack to focus on stablecoins in advance of the passage of the GENIUS Act.
“We intend for Old Glory Bank to be the first chartered bank to fully integrate crypto into daily banking,” Michael Staw, the bank’s chief innovation officer, said in a press release. “We are an actual bank, so we are confident that, in the future, our customers will have the ability to easily move money on and off chain, as well as instantly deposit crypto into their bank account, by exchanging crypto into fiat utilizing our patent-pending OGB Freedom Offramp.”
Clear Street advised Old Glory. Cohen & Company Capital Markets advised Digital Asset Acquisition Corp.