tl;dr
Paxos has applied to the Office of the Comptroller of Currency (OCC) for a national trust charter to replace its New York Department of Financial Services charter, enabling it to operate nationwide. The firm views OCC approval as a path to enhanced federal oversight, efficiency, and growth opportuni...
Stablecoin and tokenization firm Paxos has filed an application with the Office of the Comptroller of Currency (OCC) for a national trust charter, aiming to upgrade its existing New York Department of Financial Services (NYDFS) charter. If approved, this would allow Paxos to conduct business nationwide across the United States.
A Paxos spokesperson explained that the OCC is considered the foremost global regulator of banks, and obtaining national designation would unlock new growth opportunities and efficiencies under the highest standards of oversight. Federal approval would bring Paxos under direct federal supervision and enable more rigorous, efficient solutions, especially as stablecoin legislation gains ground at the federal level.
Paxos’ application follows similar national bank charter bids from other stablecoin firms such as Circle and Ripple. These moves come amid enhanced regulatory clarity, highlighted by the signing of the GENIUS Act and the OCC’s May announcement allowing national banks to manage, buy, and sell crypto assets held in custody.
The firm believes its sophisticated operations and tailored products for major financial companies can be better supported via a national charter, helping it achieve its mission and assist customer goals more effectively. Recently, Paxos resolved charges related to the illicit use of its Binance stablecoin (BUSD) by U.S. customers, paying $26.5 million to New York State to settle the matter.
Founded in New York, Paxos issues popular stablecoins like PayPal’s PYUSD and PAXG, and counts major companies such as Mastercard, Interactive Brokers, and MercadoLibre among its users for tokenization, custody, and trading services.