PayPal Seeks Utah State-Chartered Bank License to Support PYUSD Stablecoin and Business Lending
PayPal has filed an application with Utah regulators and the Federal Deposit Insurance Corp (FDIC) to establish a Utah state-chartered industrial bank named PayPal Bank. The new bank is intended to offer business lending services to small U.S. businesses. This move would allow PayPal Bank to originate loans, hold deposits, and access payment networks directly, specifically to support the company's PYUSD stablecoin program.
Mara McNeill has been appointed as president of PayPal Bank. She brings over two decades of experience in banking and commercial lending to the role. PayPal launched its PYUSD stablecoin in August 2023 in partnership with Paxos. Since its launch, PYUSD has been integrated into PayPal's payments ecosystem and recently expanded to include YouTube payouts.
The initiative comes amid increased bank-charter activity among cryptocurrency firms. The Office of the Comptroller of the Currency (OCC) has received around 14 charter applications this year, including from major crypto platforms such as Circle, Coinbase, and Ripple. Notably, Ripple is seeking a national banking license for its stablecoin RLUSD.
PayPal has made regulated digital-asset integration a priority, enabling merchants to accept Bitcoin and Ethereum payments at checkout. According to CEO Alex Chriss, establishing PayPal Bank will strengthen the company's business operations, enhance efficiency, and support small business growth along with wider economic opportunities.
The regulatory environment is noted as favorable, referencing the approach under the Trump administration.
