The key purpose of the crypto bank “Square Financial Services” is to give loans to small businesses and corporations as the company square claims.
Recently, a press release was issued on Wednesday, March 18, 2020. According to this press release, the digital payment company Square which is run by Twitter CEO Jack Dorsey has got the conditional approval for the crypto bank from the U.S. Federal Deposit Insurance Corporation (FDIC).
Square will now act as an Industrial Loan Company (ILC)
After receiving the conditional FDIC approval, the payment company Square will now act as an Industrial Loan Company (ILC). Square also got the charter approval from the Utah Department of Financial Institutions. The payment company did not face any difficulty in getting approval from both of these institutions.
After receiving the approval, the Square Capital Lead and Executive Chairwoman of the board of directors for Square Financial Services Jacqueline Reses 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. We’re now focused on the work ahead to buildout Square Financial Services and open our bank to small business customers.”
Square aims to launch the crypto bank in 2021
It was the mission of Jack Dorsey to develop a crypto bank that offers loans to small businesses and small institutions. Jack’s purpose will get fulfilled next year as the launch of the crypto bank “Square Financial Services” is expected to take place in 2021. Square’s crypto bank will provide loans and deposit products for small businesses. According to the press release:
“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.”
CEO Lewis Goodwin and CFO Brandon Soto have been given the charge to lead the executive team of the bank because they have in-depth leadership experience in the field of banking.