Paxos Seeks National Bank Trust Charter Amid Rivals' Moves
Business/Policy

Paxos Seeks National Bank Trust Charter Amid Rivals' Moves

Paxos aims to shift its regulatory oversight from New York to federal, joining other stablecoin firms in their charter applications.

Stablecoin issuer Paxos has officially submitted an application for a national bank trust charter with the Office of the Comptroller of the Currency (OCC). This strategic move aims to transition oversight from the New York Department of Financial Services (NYDFS) to federal governance.

This comes in the wake of applications from competing firms such as Circle and Ripple. Paxos had sought conditional approval for this charter previously in 2021; however, it lapsed in 2023 prior to obtaining full approval.

Key Points:

  • Paxos is shifting from state to federal regulatory oversight.
  • The company previously had a conditional national trust charter that expired earlier this year.
  • This initiative comes alongside its rivals’ similar applications, indicating a competitive landscape in the stablecoin sector.

Paxos issues the PYUSD stablecoin for PayPal and is a co-founder behind the Global Dollar (USDG) token.

“[The] OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency,” stated Charles Cascarilla.

This trend comes as the U.S. Congress has enacted rules affecting stablecoin operations, culminating in greater regulatory clarity for the industry.

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