The Intersection of Fintechs and Banks: A Recap of 2025
In 2025, the distinction between fintechs and traditional banks grew increasingly indistinct, marking a notable shift in the financial landscape. This was largely driven by fintech companies either acquiring existing banks or seeking their own bank charters. This trend reached new heights under the new administration, with numerous fintechs launching their efforts to secure de novo charters. This article provides a recap of the most-read stories regarding fintechs and bank charters in 2025.[source]
Why Fintechs are Acquiring Banks
In a bid to secure the benefits of bank charters, fintech companies have begun to acquire banks. This follows a period of almost no activity in the fintech/bank M&A space under the Biden administration. The tide started to turn when the Office of the Comptroller of the Currency (OCC) approved a deal for SmartBiz Loans to acquire Detroit-based Centrust Bank. The deal resulted in SmartBiz Loans acquiring the community bank’s national OCC-granted charter and changing its name to SmartBiz Bank.
It’s worth noting that new, or “de novo,” bank charter applications have historically been challenging for fintechs to acquire. Under President Joe Biden’s administration, none were approved, with Varo being one of the few fintechs to successfully obtain a de novo bank charter before that.[source]
Crypto Trust Charter Applications and Approvals
In 2025, crypto trust charter applications saw a significant increase, with Coinbase being the latest digital asset firm to file for a national trust charter from OCC. However, traditional banks have been urging regulators to carefully consider the implications of such charters, which they generally oppose. The application by Coinbase, the largest U.S.-based digital-currency exchange, aimed to expand their offerings to customers, while clearly stating that they do not aim to become a bank.
In a landmark decision, on Dec. 12, the OCC conditionally approved charter applications granting national trust banking charters to the digital-asset arms of First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets and Paxos Trust Company.[source][source]
PayPal’s Pursuit of an Industrial Loan Charter
PayPal, a leading global payments company, also sought to join the banking arena in 2025. The company submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) for an industrial loan charter, in a bid to establish PayPal Bank. The charter would simplify the process for PayPal to lend to businesses. Since 2013, PayPal has originated more than $30 million in loans to over 420,000 businesses globally.[source]
Circle’s National Trust Charter Application
Circle, a leading issuer of stablecoins, submitted an application for a national trust bank charter in 2025. This move was seen as a significant development that could further integrate stablecoins into the broader financial system. A national trust bank charter would allow Circle to offer custodial services under the regulatory scope of the OCC, as well as represent stocks and bonds on a blockchain network.[source]
Conditional Approval of Erebor Bank’s Charter Application
In December, the FDIC approved a deposit insurance application for Erebor Bank, a de novo national bank founded by Palmer Luckey and backed by Peter Thiel’s Founders Fund and Joe Lonsdale’s 8VC. The OCC had previously given Erebor’s organizers conditional approval for a national bank charter in October. Erebor Bank plans to provide deposit and lending products to businesses and individuals in various industries, including virtual currency market participants.[source][source]
Nubank’s Bid for a U.S. Bank Charter
Brazilian neobank, Nubank, set its sights on the U.S. digital banking market in 2025. The company filed for a U.S. national bank charter with the OCC, in a strategic move to expand its international footprint. A national bank charter would enable Nubank to scale in the U.S. market and offer services such as deposit accounts, credit cards, loans, and digital asset custody.[source]
