Paxos has become the latest digital asset company to seek a US national trust bank charter.
Paxos has filed to convert its New York Department of Financial Services trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency. This change will not alter the company’s business model but will bring it under federal oversight, ensuring “the highest global standards for safety and transparency,” according to a statement.
Paxos, which provides blockchain and stablecoin infrastructure and is behind PayPal’s PYUSD, initially applied for a national trust bank charter in 2020, receiving preliminary approval from the OCC before the application expired. This marks a renewed effort in a more favorable US environment for crypto firms and stablecoins in particular, as seen with recent charter applications from Circle and Ripple.
CEO Charles Cascarilla stated, “By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available.”
Recently, Paxos also reached a $48.5 million settlement with the New York Department of Financial Services over AML failures related to its partnership with Binance.