PayPal is applying for a U.S. banking charter, likely as an Industrial Loan Company (ILC) in Utah, to offer more direct financial services like small business lending, taking advantage of a more favorable regulatory environment under the Trump administration for fintechs to become banks, gain FDIC insurance, and better compete with traditional banks. Essentially, PayPal wants to move beyond just being a payment app to become a full-fledged, regulated bank, especially to boost lending. This Fintech-to-Bank Trend: Follows other crypto firms like Circle and Paxos also getting bank-like approvals, showing a shift in financial regulation.