PayPal has submitted an application to the U.S. Office of the Comptroller of the Currency to establish a dedicated bank focused on small business loans. This initiative would enable PayPal to originate, underwrite, and service loans using its transaction data, potentially accelerating financing for small businesses on its platform. The approval process remains a significant hurdle, but if successful, existing products like PayPal Working Capital could see expansion. The proposed bank could pave the way for a token launch, contingent on regulatory approval. PayPal's next steps in expanding its financial services will depend on feedback from regulators, which will determine the feasibility and timeline of this new venture.