Square gets a go-ahead from FDCI to open a bank in Salt Lake City, Utah

Square Financial Services will launch in 2021 and will offer focus on small business customers

Square continues to unveil future plans amidst the global financial downturn

On March 18, 2020, Square announced in a press release that it had received conditional approval from the Federal Deposit Insurance Corporation (FDIC) to open a bank in Utah as well as a charter approval from Utah’s Department Of Financial Institutions.

The new bank will be called Square Financial Services and will focus on offering small business loans through their lending service, Square Capital, and deposit products.

According to Square, which is owned by Twitter’s CEO Jack Dorsey, Square Financial Services will be ready to launch next year as its independent and direct subsidiary.

The news adds to a string of announcements by Square since January, including building a Lightning Development Kit and getting a patent for creating a crypto-friendly instant payment platform.

Square Says Square Capital Is Perfectly Positioned To Bridge Gaps in the Financial System

The Executive Chairwoman of Square Financial Services, Jacqueline Reses, stated that Square is currently focused on its task to build the bank and open it to small business owners:

“We appreciate the FDIC’s thoughtful approach to our application, and recognition that Square capital is uniquely positioned to build a bridge between the financial systems and the underserved.”

The new bank, which will open in 2021, will be a direct subsidiary of Square:

“Its primary purpose will be to offer small business loans for Square Capital’s commercial lending business, and to offer deposit products.”

Reses added that while Square is now focused on the task of building the bank in Salt Lake City, Utah, Square Financial Services will continue to “sell loans to third-party investors and limit balance sheet exposure.

Square Continues to Introduce Future Development Plans amidst Global Economic Downturn

The World Health Organization first announced Coronavirus as an outbreak on December 31, 2019. But since January this year, many fintech companies, including Square, have made announcements about their companies projecting a future beyond the outbreak and the economic fallout.

Square offers many types of payment services, including Cash APP, which has been enabling Bitcoin purchases since 2018. On January 21, the U.S Patent and Trademark Office awarded Square a patent for developing a unique payment service that enables real-time cryptocurrency and fiat swaps.

Square Crypto, announced its first project on January 21, that they were building a Lightning Development Kit to improve Bitcoin Network’s scalability, security, and privacy to support mass adoption of Bitcoin:

“We’re building a Lightning Development Kit (LDK) that gives wallet and application developers a convenient way to create custom experiences.”

On March 4 Square Crypto again unveiled a grants program to support developers working on unique solutions for Bitcoin:

“Proposals should be aimed at improving bitcoin through UX, scaling, privacy, security, or something else we haven’t thought of.”Jack Dorsey, as a big-time Bitcoin supporter, is taking significant steps to contribute to its ecosystem as the currency of the future. However, some critics have raised questions as to whether this influence could interfere with Bitcoin’s network decisions.