U.S. banking regulators said on Friday they approved Capital One's $35.3 billion purchase of Discover Financial Services , paving the way for the combined firms to become the nation's eighth-largest bank.

The pending merger between Capital One and Discover Financial services received approval from several regulators Friday, bringing the $35 billion tie-up closer to completion.

Capital One's acquistion of Discover will combine two of the industry's best-known names, making it the biggest credit card company when customers’ outstanding balances are combined.