Revolut, a London-based challenger bank valued at $5.5bn, is reportedly planning to apply for a banking licence in the US in the coming weeks.

The fintech firm will apply for a state banking charter with the Federal Reserve Bank of San Francisco and California’s Division of Financial Institutions, CNBC reported.

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Revolut intends to become a regulated bank in the country.

Even though its bank charter will be with California, it will be able to operate nationwide through interstate agreements, the report added.

The move drew questions from some industry onlookers as Revolut is not planning to apply for a licence with national regulators like the Office of the Comptroller of the Currency (OCC).

Formed in 2015, Revolut is the biggest digital bank in Europe with 13 million users.

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The financial super app offers banking, stock and crypto investing features, in addition to providing fee-free currency conversions to Europeans.

Revolut already operates in the US, offering its core digital banking product in partnership with Metropolitan Commercial Bank, noted CNBC.

However, the OCC is facing backlash from state financial regulators for creating a special charter for fintechs.

In July 2020, digital bank Varo Money also secured a bank charter from the OCC to operate as a bank across the US.

In the same month, US-based personal finance innovator SoFi filed an application for a national bank charter with the OCC.

Meanwhile, in March, the Federal Deposit Insurance Corporation (FDIC) approved the deposit insurance application submitted by Nelnet Bank and Square Financial to create a de novo bank.

In February, fintech pioneer LendingClub bought Radius Bank in a cash-stock deal worth $185m to secure a national bank charter in the US.