PYUSD issuer plans business loans and interest-bearing savings through proposed PayPal Bank
Digital payments giant PayPal has taken a major step toward expanding its financial services footprint by applying for a Utah industrial bank license. The move signals the companys intent to deepen its role in traditional banking while continuing its growing presence in digital assets and stablecoins.
According to the company’s announcement, the license would allow the creation of PayPal Bank, a new lending-focused entity designed to offer business loans to small and medium sized enterprises. In addition PayPal plans to introduce interest-bearing savings accounts for eligible customers, expanding beyond its core payments and wallet services.
firm also confirmed it has applied for deposit insurance through the Federal Deposit Insurance Corporation a key step toward operating regulated banking services in the United States. PayPal stated that improving access to capital remains a major challenge for small businesses, and the new bank would aim to address that gap.
Utah industrial banks operate under commercial bank-level regulatory oversight while facing fewer restrictions than federally chartered banks. Notably, these institutions are not subject to the Bank Holding Company Act, giving parent companies greater operational flexibility.
While the application focuses on banking services, PayPal has recently expanded its digital asset offerings, including crypto transfers, payment links, and merchant crypto payment solutions. The bank license could further position PayPal at the crossroads of traditional finance and blockchain-based payments.
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