Square, Inc. gets Federal Deposit Insurance Corporation (FDIC)'s approval to create an industrial bank that will issue commercial loans to merchants that process card transactions through Square, Inc.'s payments system.

Square, Inc., was formed in 2009 as a payment services provider that helps sellers accept chip cards and NFC payments and is also the owners of Cash App, which lets people send money to friends and family instantly.

It is interesting to note that Twitter CEO and prominent bitcoin advocate Jack Dorsey is also the CEO of Square which is actively involved in cryptocurrency-related businesses and financing operations.

However, according to a Coindesk source, the cryptocurrency bank has no plans to offer any features related to cryptocurrency.

Square offers a suite of financial services such as point-of-sale payments, financing, and other related services.

According to the announcement, the approval by FDIC is based on the following seven (7) factors:

• The financial history and condition of the institution.
• The adequacy of the institution's capital structure.
• The future earnings prospects of the institution.
• The general character and fitness of the management of the institution.
• The risk presented by the institution to the Deposit Insurance Fund.
• The convenience and needs of the community to be served by the institution.
• Whether the institution's corporate powers are consistent with the purposes of the Federal Deposit Insurance Act.

"The Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) has fully considered all available facts and information relevant to the consideration of the statutory factors enumerated in section 6 of the Federal Deposit Insurance Act (“FDI Act”), including financial history and condition, capital adequacy, future earnings prospects, the general character of management, risk to the Deposit Insurance Fund, convenience and needs of the community, and consistency of corporate powers, as they relate to the application for Federal deposit insurance for Square Financial Services, Inc. (“Bank”), a proposed Utah-chartered industrial bank to be located at 3165 East Millrock Drive, Suite 160, Salt Lake City, Utah, 84121. The FDIC has concluded that the application should be approved" ~FDIC 2020

With this approval, the Company is required to establish the bank which will run under the name -Square Financial Services, Inc. within 12 months.

However, Square Financial Services, Inc. is still awaiting approval from the Utah Department of Financial Institutions before commencement.