The US Federal Deposit Insurance Corporation (FDIC) has just approved the deposit insurance application submitted by Square to launch Square Financial Services, the company's new industrial bank.
According to the FDIC, the bank will offer commercial loans to merchants who use the Square system to process card transactions.
The launch of Square Financial Services will take place in the US state of Utah in 2021. The bank is awaiting approval from the Utah Department of Financial Institutions. Once it is received, the company has 12 months to launch its bank. Square has said:
"The bank, Square Financial Services, is expected to launch in 2021. It will operate independently, as a direct subsidiary of Square, Inc. Its primary purpose will be to offer small business loans for Square Capital’s commercial lending business, and to offer deposit products."
Square, whose CEO is Twitter founder Jack Dorsey, offers the Cash app, which allows users to buy and sell Bitcoins.
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