Bitcoin's biggest fan is opening a bank

Jack Dorsey, CEO of Twitter and "the most hardcore Bitcoin fan on the West Coast of the United States", is entering the banking industry, and his Square has been approved to open a bank in 2021.

On March 18, U.S. time, the Federal Deposit Insurance Corporation (FDIC) conditionally approved Square's bank charter to launch an industrial loan company, Square Financial Services. Square Financial Services will be headquartered in Salt Lake City, Utah, and has therefore received approval from Utah's financial regulator.

Square Financial Services’ primary businesses will be deposit taking and small business lending, and it plans to continue selling loans to third-party investors. Square does not expect Square Financial Services to have a “material impact on Square’s balance sheet in 2020.”

Jack Dorsey is known to be Silicon Valley's most ardent Bitcoin advocate. He previously told The Times that he expects Bitcoin to become the only global currency within the next decade.

Not long ago, with the strong push of Jack Dorsey, Twitter also released a Bitcoin emoji, which will be displayed every time the hashtag #bitcoin is entered (as shown below).

In addition, a large number of cryptocurrency enthusiasts are active on Twitter.

One of the features of Square's Square Cash App is the ability to buy Bitcoin directly. Square's fourth quarter report for 2019 showed that investors purchased more than $178 million worth of Bitcoin through Square Cash App. Bitcoin-related profits accounted for half of Square's Cash App revenue in the fourth quarter of 2019. Throughout 2019, users purchased more than $516 million worth of Bitcoin through Square Cash.

Square is active in the cryptocurrency space. Square Crypto recently funded two Bitcoin core developers, Jon Atack and Tankred Hase, to enable them to work full-time on open source projects that benefit the Bitcoin network. In addition, Square Crypto is particularly committed to expanding the development of the Lightning Network. In January 2020, Square Crypto released its Lightning Network Development Kit.

Lewis Goodwin will serve as CEO of Square Financial Services, and Square Treasurer Soto will serve as CFO of Square Financial Services. Goodwin was previously Chairman and CEO of Green Dot Bank and has held senior positions at Toyota Savings, Chrysler Financial, and West One Bank. Soto was previously CFO of Green Dot Bank and has held senior positions at Sallie Mae Bank, Chrysler Financial, Toyota Savings, Allegiance Direct Bank, and JP Morgan Chase.