Upgrade Files for Nevada ILC Charter to Launch FDIC-Insured Bank

Upgrade, a San Francisco-based fintech, has applied for a Nevada industrial loan company charter. The move signals its intention to establish an FDIC-insured bank of its own, according to its filing. The company currently operates as a financial technology firm rather than a chartered bank.

An ILC charter allows nonbank companies to own an insured depository institution under a specific regulatory framework. Nevada is one of a few states that issue such charters. The structure has attracted fintech and commercial firms seeking direct control over lending and deposit operations.

The application now faces review by state and federal regulators. If approved, Upgrade would gain a banking platform that could support its existing products while opening new ways to fund loans and hold customer deposits. The company would still need to meet capital, compliance and consumer protection requirements.

The filing reflects a broader push by fintech firms to move closer to regulated banking. Such charters can reduce reliance on partner banks, though they also bring tighter supervision and higher compliance costs. It is not yet clear how long the review will take or whether the application will succeed.