PayPal Holdings has filed for a Utah industrial bank license with the Federal Deposit Insurance Corp. (FDIC) and the Utah Department of Financial Institutions. The application would allow PayPal to form a Utah-chartered bank, referred to as PayPal Bank. This is a major step in the company’s plan to expand financial services, including stablecoin use and lending offerings.
If approved, the new bank would give PayPal the ability to offer deposits, savings accounts, and loans directly. It could also enhance the company’s stablecoin strategy, especially around PayPal USD (PYUSD), its U.S. dollar-pegged digital currency. A banking charter can help reduce reliance on third parties and bring more services under PayPal’s own regulation.
PayPal has already provided over $30 billion in loans to small businesses. With a bank charter, it can serve those firms more fully and offer interest-bearing products directly to customers. The move reflects a broader trend of fintech and crypto firms seeking regulated banking status to support growth.
The application aligns with recent industry shifts, where crypto-related companies pursue bank charters to integrate digital assets and payments into traditional finance. PayPal’s effort shows how major payment platforms are moving deeper into regulated banking and stablecoin infrastructure in the United States.
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