- Paxos has applied for a national trust charter with the Office of the Comptroller of the Currency (OCC).
- The application would let Paxos expand its services across the United States.
- Paxos seeks federal oversight in light of recent stablecoin legislation and new banking rules.
- Circle and Ripple have also sought similar national charters.
- Recently, Paxos paid $26.5 million to settle charges related to the Binance stablecoin (BUSD).
Paxos, a company that specializes in stablecoins and tokenization, has submitted an application for a national trust charter to the Office of the Comptroller of the Currency (OCC). The company announced this move on Monday as part of its plans to scale operations across the United States.
If approved, the new charter will replace Paxos’ current license from the New York Department of Financial Services. A Paxos spokesperson stated, “The OCC is the preeminent global regulator of banks. Paxos believes national designation will unlock new opportunities for growth and efficiency while being held to the highest standards of oversight.”
The company said federal oversight would help it deliver more effective solutions after new national legislation brought greater clarity to the stablecoin industry. “Approval of the application would bring Paxos under federal oversight and allow us to offer more rigorous, efficient solutions to customers at a crucial time when stablecoin legislation finally exists at the federal level,” the spokesperson told Decrypt.
Other stablecoin firms including Circle and Ripple have also filed for similar charters, following the signing of the GENIUS Act and the OCC’s announcement in May that allowed national banks to manage, buy, and sell crypto assets under their custody.
According to Paxos, “We have brought greater sophistication to our operations to offer tailored products to the world’s biggest financial companies. As such, we believe we can better achieve our mission and support our customers’ goals via a national charter.” The company recently settled charges from U.S. authorities related to the illegal use of Binance USD (BUSD) by American customers, paying $26.5 million to the New York State Department of Financial Services.
Based in New York, Paxos issues stablecoins such as Paypal’s PYUSD and PAXG, and its tokenization and custody services are used by companies like Mastercard, Interactive Brokers, and MercadoLibre. Stablecoins are digital tokens tied to traditional assets like the U.S. dollar, designed to provide price stability for users.
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