๐บ๐ธ Urgent: PayPal applies for a U.S. banking charter, a giant step towards expanding lending and financial services!
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๐ข What's new?
โ PayPal announced applications with the FDIC and the Utah Department of Financial Institutions to establish PayPal Bank as an Industrial Loan Company (ILC) in Utah
โ Proposed president Mara McNeill, formerly at Toyota Financial Savings Bank
โ Comes amid a wave of regulatory approvals, after the OCC granted trust bank licenses to crypto companies like Ripple and Circle last week
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๐ก Analysis:
โ The application aims to lower processing costs, provide direct access to FDIC-insured deposits, and expand lending to small businesses (over $30 billion since 2013)
โ A second attempt after 2019 talks with the OCC, benefiting from the friendly regulatory environment under the Trump administration
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โก Why does it matter to you?
โ Enhances the integration of digital payments with traditional banking services, accelerating innovation in PYUSD and stablecoins
โ May open doors for safer and more widespread crypto services, with secured deposits and reduced reliance on partners
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โDo you think PayPal Bank will change the rules of competition with traditional banks in digital payments?
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