PayPal Moves to Set Up Utah-Chartered Bank to Bolster Payments and Lending
PayPal has applied to establish a Utah-chartered industrial bank, aiming to directly manage lending, deposits, and payment infrastructure for U.S. small businesses and reduce dependence on partner banks. Approval would let PayPal originate loans, hold deposits, and access payment networks directly. This move supports PayPal’s expanding operations in crypto and stablecoins within a regulated banking framework. The bank license would help the company provide more efficient business lending and capital access for small businesses. PayPal has increasingly integrated crypto and stablecoin functionality into its payments system, including enabling merchant crypto acceptance with automatic fiat conversion and expanding its PYUSD stablecoin to networks like Tron and Avalanche. Recently, PYUSD was enabled for U.S. YouTube creator payouts, further embedding stablecoins into PayPal’s payment flows.
