PayPal, the payment gateway and issuer of the stablecoin PayPal USD (PYUSD), has officially begun the process of establishing a bank in the United States, joining the trend of companies in the Bitcoin (BTC) and cryptocurrency space to strengthen their integration with the regulated financial system.
The company filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). Establish an industrial finance company operating under the name PayPal Bank.
The move is aimed at expanding its business capabilities, including lending to small and medium-sized businesses and offering interest-bearing savings accounts to customers, as well as optimizing processing and payment activities with a view to partnering directly with U.S. card networks.
After hearing the news, The company’s stock price initially rose to $62.8.However, it then stabilized around $60.7, as seen in the following graph.
Obtaining banking licenses for companies offering services related to Bitcoin and other cryptocurrencies is gaining momentum as a way to expand their business within a clearer regulatory framework.
The Office of the Comptroller of the Currency (OCC), which oversees national banks, approved five applications to form national trust banks last week, CriptoNoticias reported. The companies receiving this approval are BitGo, Fidelity Digital Assets, Paxos, Ripple, and First National Digital Currency Bank.reflects regulatory changes that expand options for companies within the digital asset ecosystem to operate at the federal level.
