December 16, 2025 – PayPal, the well – known payment giant, has put forward an application to the regulatory authorities in Utah and the Federal Deposit Insurance Corporation (FDIC) in the United States. The company is seeking permission to establish a licensed industrial bank in Utah.
The main objective behind this move is to gain tighter control over the loan, deposit, and payment infrastructure for small – and medium – sized enterprises (SMEs) across the US. If the application gets the green light, PayPal will be in a position to offer more direct support to its rapidly growing cryptocurrency and stablecoin businesses within a regulated banking framework.
Once approved, PayPal will have the ability to issue loans on its own, accept customer deposits, and gain more direct access to payment networks. This will significantly reduce its reliance on partner banks.
In a statement, PayPal made it clear that the purpose of this application is to “provide commercial loan solutions for US SMEs in a more efficient way and cut down on dependence on third – parties.”
Alex Chriss, the CEO of PayPal, also commented in the statement, “For SMEs that are striving to grow and expand, accessing capital remains a major challenge.”
