Chime has agreed to acquire Stride Bank, N.A. for US$590 million in cash.

The deal ends a seven-year arrangement between the two companies.

Under the deal, Chime becomes a regulated bank holding company.

Stride had been Chime’s sponsor bank, the licensed partner that let Chime offer accounts and cards under its charter.

Once the deal closes, Stride will be renamed Chime Bank, N.A. It will run as a wholly owned subsidiary of Chime.

The price works out to about 1.5 times Stride’s tangible book value. Chime will pay in cash from its own balance sheet, with no additional capital raised.

Chime expects the deal to lower its costs by removing sponsor bank fees and cutting its cost of funds. It also expects to serve customers directly in all 50 states once the deal closes.

“By combining Chime’s leading brand and deep member relationships with Stride’s national charter and team, we will accelerate toward our vision to be the largest provider of primary bank accounts in America,”

said Chris Britt, CEO and co-founder of Chime.

“Stride’s national bank charter and experienced team will be central to what comes next.

I look forward to continuing to lead Chime Bank, creating new opportunities for our customers, communities, and employees,”

said Brud Baker, Chairman and CEO of Stride Bank.

Stride Chairman and CEO Brud Baker will continue to lead the renamed Chime Bank once the deal closes.

The deal is expected to close in the first half of 2027. It still needs approval from US banking regulators.

Featured image: Edited by Fintech News Switzerland, based on image by Andersonrise via Magnific.