Klarna (NYSE: KLAR) has submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish Klarna Bank USA, a proposed Utah-chartered industrial bank.

If approved, Klarna Bank USA would operate as a wholly owned subsidiary of Klarna Inc., with its own independent board, governance, and internal controls. The company has held a banking license in Europe since 2017 and currently serves U.S. customers through partner banks.

Gary Harding has been named as the proposed President and CEO of Klarna Bank USA. Harding has previously served as Chairman and CEO of Milestone Bank and as President and CEO of Prime Alliance Bank.

"Banking is built on trust," said Sebastian Siemiatkowski, co-founder and CEO of Klarna. "We've seen firsthand the appetite for a fairer, more transparent approach in the U.S., and our own banking license is the natural next step, giving customers tools to borrow responsibly and build financial confidence, while bringing greater competition, innovation, and choice to consumers and merchants alike."

According to the company's press release, Klarna has provided U.S. customers access to over $91.3 billion in credit since 2019 and currently serves 30 million American users annually. The company states the charter would allow it to bring existing banking operations in-house, covering payments, savings, credit, and merchant services.