PayPal Moves to Launch US Bank, Expand Crypto and Lending Services

PayPal has applied to establish a Utah-chartered bank, aiming to offer business lending, savings accounts, and support for crypto operations, while reducing reliance on partner banks and expanding its regulated financial services.

PayPal has submitted an application to establish a Utah-chartered industrial loan company, aiming to launch its first physical US bank, PayPal Bank. The application was filed with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). If approved, PayPal Bank will focus on providing business lending solutions to small businesses and offering interest-bearing savings accounts. The move is also intended to support PayPal’s expanding crypto and stablecoin operations, including its PYUSD stablecoin, by allowing the company to originate loans, hold deposits, and access payment networks directly. This would reduce reliance on partner banks and streamline its payments and settlement infrastructure. Customer deposits at PayPal Bank would be eligible for FDIC insurance. The company has appointed Mara McNeill as the bank’s president in preparation for the potential launch. PayPal’s application reflects a broader trend of fintech and crypto firms seeking US banking licenses to expand their financial services within a regulated framework.