Banking Regulatory Update: Paxos Pursues National Charter Amid Emerging Stablecoin Framework

Paxos Renews Push for US Bank License as Stablecoin Rules Take Shape

Paxos Trust Company has filed a new application for a national bank charter, marking its second attempt to gain federal oversight for its cryptocurrency operations. The company, which powers PayPal’s PYUSD stablecoin, is trying again after its previous application expired in 2023. This strategic move comes just weeks before President Trump signed the GENIUS Act into law. This landmark legislation creates the first federal rules for stablecoins in the United States.

Paxos currently operates under a New York state license. The company wants to convert this to a national trust bank charter from the Office of the Comptroller of the Currency (OCC). This federal license would enable Paxos to hold customer money and process payments across all 50 states. Unlike regular banks, a national trust bank cannot take deposits from everyday customers or make loans. Instead, it focuses on managing assets and providing custody services for institutions.

Charles Cascarilla, Paxos CEO and co-founder, stated that OCC oversight would “help build on our historic commitment to maintaining the highest standards of safety and transparency.”

Source: bravenewcoin.com