- Paxos applies to convert its New York trust charter into a U.S. national trust bank charter.
- The move focuses on nationwide custody and payment activities under the OCC.
- This expansion aims to extend services, particularly regulated stablecoins like PYUSD for PayPal.
Paxos has applied to convert its limited-purpose New York trust charter into a U.S. national trust bank charter with the OCC to operate nationwide.
If approved, Paxos would enhance its stablecoin and blockchain operations under federal oversight, impacting market trust and regulatory alignment.
Paxos has filed to convert its New York limited-purpose trust charter into a U.S. national trust bank charter. The move could expand its operations, focusing on nationwide custody and payment activities under Office of the Comptroller of the Currency.
“OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency.” — Charles Cascarilla, CEO and Co-founder, Paxos
The application signals an ambitious step for Paxos led by CEO Charles Cascarilla. Federal oversight aligns with efforts to maintain safety and transparency. Paxos received conditional approval in 2021, which lapsed before fulfilling all requirements.
The conversion aims to extend Paxos’ services, particularly its regulated stablecoins like PYUSD for PayPal. The shift promises broader blockchain infrastructure operations … without taking retail deposits or issuing loans.
Approval could impact financial activities, enhancing Paxos’ institutional trust. Although no new funding details have been shared, increased regulatory compliance might attract further investment interests.
Successful approval could position Paxos uniquely amid changing regulatory landscapes. Nationwide federal oversight adds another layer of safety to Paxos’s operations. Market participants might watch closely for potential changes in custody services.
Historically, similar applications have aimed at providing broader financial offerings under trusted oversight. Meeting pre-opening conditions and OCC guidelines will be crucial, especially in light of expired previous approvals.
