PayPal Files Application to Establish First US Bank, Potentially Boosting Crypto Integration

PayPal Holdings has taken a decisive step toward traditional finance integration by applying to charter a Utah-based industrial loan company. The move, submitted to both state and federal regulators, signals the payments giant's ambition to expand beyond digital transactions into full-service business banking.

The proposed bank WOULD primarily target small business lending - a sector where PayPal already maintains significant traction. With $57 billion in market capitalization, the company stands to gain operational efficiencies and new revenue streams through direct banking capabilities. "This isn't just about deposits," said CEO Alex Chriss. "It's about removing capital barriers for entrepreneurs who drive America's economic growth."

Notably absent from the announcement was any mention of cryptocurrency services, though industry observers note the banking charter could eventually facilitate smoother fiat gateways for PayPal's existing crypto offerings. The company's stablecoin ambitions and blockchain infrastructure investments suggest banking capabilities may serve as foundational infrastructure for future digital asset services.