FinTechs Are Shopping for Very Different Charters
FinTech companies are pursuing different types of national bank charters. Revolut, Circle, Block, and Upstart seek approvals for various banking models, including deposit-taking, lending, and digital-asset custody. Chime agreed to acquire Stride Bank for $590M. The OCC received 40 de novo applications in 18 months, with 23 involving digital assets. These charters aim to expand services and bring activities under federal supervision.
How this was made
The 30-second read
Why it matters
These applications could reshape the competitive landscape between fintechs and legacy banks.
Market read
FinTechs pursuing bank charters may affect funding, lending, and crypto‑custody markets.
What to watch
Potential capital requirements and integration costs for new bank operations.
Background
The OCC has seen a surge in applications for national and trust banks, many involving digital‑asset activities.
Ticker impact
Upstart received conditional OCC approval for Upstart Bank, N.A., a branchless bank that would accept FDIC-insured deposits and originate consumer loans.
Potential modest upside for UPST if the bank receives final approval and launches.
Conditional approval is a step forward, but final OCC and FDIC approvals are still required.
Market effects
FinTech charter activity signals growing regulatory interest in digital‑asset and consumer‑lending services.
U.S. fintechs may gain competitive edge over traditional banks.
Highlights the shift toward regulated crypto custody worldwide.
Counterpoint
Regulatory hurdles could delay or block these initiatives, limiting near‑term impact.
Key entities
- RegulatorOffice of the Comptroller of the Currency
U.S. banking regulator reviewing the charter applications.
- FinTechChime
Agreed to acquire Stride Bank for $590 million, though Chime is private and not listed.
