The post PayPal follows crypto firms in pursuit of U.S. bank charter appeared on BitcoinEthereumNews.com.

PayPal Holdings Inc. has now formally applied to become a U.S.‑chartered bank, submitting a written application to the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions to form a Utah-chartered industrial loan company, to be known as PayPal Bank.  “Securing capital remains a significant hurdle for small businesses striving to grow and scale,” PayPal Chief Executive Officer Alex Chriss said in the statement. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small-business growth and economic opportunities across the U.S.” It is worth noting that the company already holds a banking license in Luxembourg and is also interested in offering customers interest-bearing savings accounts as the firm expands and enhances its consumer-focused financial products. PayPal seeks bank status to expand lending and join fintech boom PayPal’s recent plan aims to increase the company’s small-business lending capacity and decrease its reliance on third-party financial partners, the company said in a press release on Monday. If approved by regulators, PayPal Bank would open the door for the payments juggernaut to offer deposits insured by the FDIC, streamline lending for loans, and potentially roll out interest-bearing savings products as part of its broader consumer finance portfolio.  Strengthening PayPal’s balance-sheet capabilities will help combat the lingering capital challenges faced by small businesses nationwide, PayPal CEO Alex Chriss said. This application comes amid a notable surge in banking charter activity among both fintech and cryptocurrency‑linked firms. Just a few days ago, in the wake of this situation, the U.S. Office of the Comptroller of the Currency (OCC) granted conditional preliminary approvals to a handful of crypto and digital asset companies, including Circle Internet Group, Ripple Labs, BitGo, Paxos, and Fidelity Digital Assets, to establish or convert into federally chartered national trust banks. These are…

---

Filed under: News - @ December 16, 2025 1:27 am