With the regulatory environment becoming more accommodating, PayPal is making a bold move to apply for a US bank charter. The fintech giant plans to establish a Utah-chartered industrial loan company if the application gets approved. This shift is strategic—it would enable PayPal to extend lending services more directly to small businesses and merchants. The timing raises eyebrows though. As traditional players look to capitalize on looser restrictions, we're seeing the boundaries between fintech and traditional banking blur faster than ever.