11.08.2025 21:27

Paxos, a prominent cryptocurrency infrastructure company, has submitted a formal application to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This ambitious move, announced on Monday, aims to significantly expand the company's operational reach and regulatory standing.

Securing this national charter would represent a major shift for Paxos, transitioning them from their current New York Department of Financial Services trust charter to federal oversight. This federal supervision would streamline operations, enabling Paxos to provide custodial and payment services nationwide under a unified regulatory framework. Their existing services, including issuing PayPal's PYUSD stablecoin and facilitating blockchain-based settlement and tokenization, would benefit from this broadened scope.

Charles Cascarilla, Paxos' CEO, emphasized that federal oversight would solidify the company's commitment to the highest safety and transparency standards, a particularly relevant point given the escalating demand for regulated stablecoins. This application positions Paxos alongside competitors like Circle and Ripple, who also recently submitted similar applications to the OCC. This wave of applications underscores the intensifying competition within the crypto industry and the increased regulatory clarity following the passage of the GENIUS Act on stablecoins.

While Paxos previously received conditional OCC approval in 2021, this authorization subsequently expired in 2023. Their renewed pursuit of a national charter follows the successful resolution of compliance matters with New York regulators earlier this year. This initiative reflects a wider industry trend: the integration of crypto payment systems within the established traditional banking infrastructure. The application underscores Paxos' strategic vision for navigating the evolving regulatory landscape of the cryptocurrency sector. This information comes from internet sources.