Jack Dorsey’s Square Gains ‘Conditional Approval’ From FDIC To Launch A Bank In 2021
Square, a financial service and merchant aggregator, received a formal conditional approval from the Financial Depository Insurance Corporation (FDIC) to launch its bank, Square Financial Service. The bank is chartered as an Industrial Loa Company (ILC) with a prospective launch date in 2021 to be announced.
Located in Salt Lake City, Utah, Square also obtained a license of operation from the state’s Department of Financial Institutions.
Square’s opens commercial lending services
The heavily crypto-associated financial company will be opening a commercial lending services platform for merchants who save on their platform. The official FDIC account released a statement on the conditional approval of Square’s bank.
“FDIC approved the deposit insurance application submitted by Square, Inc., to create a de novo industrial bank,” the statement reads. “Square Financial Services will originate commercial loans to merchants that process card transactions through Square’s payments system.”
Twitter and Square Founder, Jack Dorsey, thanked the FDIC for the approval on Twitter with a short message, “Thank you!”
Thank you! https://t.co/mM0z4snQGW
— jack 🌍🌏🌎 (@jack) March 18, 2020
Jacqueline Reses, Square Capital Lead and Executive Chairwoman of the board of directors for Square Financial Services was pleased at the latest approval promising to build the bank and boost liquidity in loans to small scale businesses and merchants. She further said,
“We appreciate the FDIC’s thoughtful approach to our application, and their recognition that Square Capital is uniquely positioned to build a bridge between the financial system and the underserved.”
So far the bank will not affect the balance sheets of Square Financial services in 2020 and vice versa.
No cryptocurrencies yet
While Square is heavily associated with Bitcoin payments and development of a cryptographic network for merchants, the bank will not deal with cryptocurrencies yet, a spokesperson from Square said.