The mobile app-focused securities trading company has applied for a bank charter with the Office of the Comptroller of the Currency, Robinhood said April 19.
“This is a first step towards being granted a national bank charter which would allow Robinhood to offer traditional banking products and services,” the company said in an emailed statement.
Receiving a bank charter would allow it to open a full-service bank alongside its trading business.
The bank it hopes to launch would be a subsidiary of Robinhood Markets Inc., the company said.
If the charter is approved, Robinhood’s bank would be one of the highest-profile de novos in recent years.
Another fintech, Varo Money Inc., received preliminary approval for its own charter for Varo Bank NA in September 2018.
Racusin is also the former CEO of Merchants Bank of California NA, a troubled institution that was fined $7 million in February 2017 over Bank Secrecy Act and anti-money laundering violations that occurred between 2012 and May 2016, according to the OCC’s consent order.