PayPal, issuer of PYUSD, applies for Utah industrial bank license
Payments company PayPal (PYPL) applied for a Utah industrial bank license, it said Monday, with the goal of creating a lending arm called PayPal Bank.
The company, which also operates the PYUSD stablecoin through a partnership with Paxos, said in a press release it intends to "provide business lending solutions" to small businesses and interest-bearing savings accounts to other customers. It also intends to work with credit card networks.
PayPal also applied for deposit insurance through the Federal Deposit Insurance Corporation.
In a statement, PayPal CEO and President Alex Chriss said, "securing capital remains a significant hurdle for small businesses striving to grow and scale."
"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.," he said.
Utah industrial banks are subject to "the same regulatory and supervisory oversight as commerical banks," but their activities "are not as restricted," according to the Utah Department of Financial Institutions website, with these types of institutions not beholden to the Bank Holding Company Act which regulates federal banks and prevents monopolization.
While PayPal's statement on Monday did not touch on its crypto-specific activities, PayPal has recently grown its foray into crypto, adding wallet-to-wallet crypto transfer functionality earlier this year and allowing its users to create personalized links for sending or requesting funds via crypto.
It's also launched a Pay with Crypto feature for merchant services, acting as an intermediary to let merchants accept cryptocurrencies as payment.
Monday's application comes on the heels of the U.S. Office of the Comptroller of the Currency, a federal bank regulator, granting five different crypto firms initial trust charters, including stablecoin issuers Circle and Paxos, Ripple, BitGo and Fidelity Digital Assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The HYPE Token Crypto Rally: Unveiling the Driving Force Behind Its Week-Long Surge
- HYPE Token's 7-day surge in late 2025, reaching $35.08, was driven by protocol upgrades, institutional backing, and retail FOMO. - Institutional investments like Paradigm’s $581M stake and retail-driven momentum mirrored the 2021 Dogecoin rally. - However, looming token unlocks and bearish indicators, including a $11B unlock of 237M tokens, raised sustainability concerns. - Technical analysis showed mixed signals, with consolidation near support levels and short-term volatility risks, while broader trend
How CFTC-Recognized Platforms Such as CleanTrade Are Transforming the Landscape of Clean Energy Investments
- CFTC-approved CleanTrade introduces a regulated SEF for clean energy derivatives, addressing market fragmentation and liquidity gaps. - The platform enables institutional-scale trading of vPPAs/RECs, achieving $16B notional volume in two months by aggregating demand/supply. - Integrated risk analytics (e.g., CleanSight) enhance transparency, allowing investors to hedge project-specific risks like grid congestion and curtailment. - Dual investment pathways attract hedge funds/pension funds through direct
The Rise of CFTC-Regulated Clean Energy Markets: Opening a New Chapter for Institutional Investors
- CFTC's 2025 approval of REsurety's CleanTrade as a SEF marks a landmark shift in clean energy markets by introducing standardized, transparent trading for VPPAs and RECs. - The platform attracted $16B in notional value within two months, enabling rapid institutional-grade transactions that previously took months to negotiate. - By addressing liquidity gaps and enabling precise risk modeling, CleanTrade is accelerating capital flows into decarbonization while bridging ESG investment gaps for institutional
The Increasing Overlap Between Health and Financial Wellbeing in Managing Personal Finances
- Global wellness economy to hit $9 trillion by 2028, driven by holistic well-being trends. - Millennials/Gen Z prioritize wellness as lifestyle, with 55% spending over $100/month on health. - Employers integrate financial wellness into health programs to reduce burnout and boost productivity. - Investors target wellness-driven SaaS, healthcare tech , and financial literacy platforms for holistic solutions.
Trending news
MoreCrypto prices
More
