Square Gets Limited Bank Charter for Merchant Lending
Today the Federal Deposit Insurance Corporation (FDIC) conditionally approved Square’s deposit insurance application related to its Industrial Loan Company (ILC) bank charter. The bank, Square Financial Services, will operate independently, as a direct subsidiary of Square, and will offer commercial loans to merchants, and deposit products. Square Financial Services is expected to launch in 2021.
Why it matters:
- Square is one of the most crypto-friendly financial institutions, having purchased more than half a billion dollars worth of Bitcoin over the course of 2019.
- With the FDIC approval, Square can now provide deposit insurance on funds stored with the bank, a coveted feature of the banking world.
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