Paxos Seeks U.S. Trust Bank License with OCC, Joins Circle and Ripple

Paxos, a regulated stablecoin issuer and tokenization platform, has filed for a national trust bank charter with the OCC. The move allows Paxos to manage and hold assets on behalf of customers and accept cash deposits and loans under applicable regulation. Paxos joins Circle and Ripple in seeking banking licenses in the US. Approval would add to regulatory milestones across Europe and Asia.

Paxos, a leading regulated stablecoin issuer and tokenization platform, has filed for a national trust bank charter with the Office of the Comptroller of the Currency (OCC). This strategic move allows Paxos to manage and hold assets on behalf of customers and accept cash deposits and loans under applicable regulation. The application is part of Paxos's ongoing effort to expand its regulatory footprint and enhance its offerings to enterprise partners and consumers [1].

Paxos, which became the first blockchain firm to obtain a limited trust charter from the New York Department of Financial Services (NYDFS) in 2015, is now seeking to convert its NYDFS trust charter into a national trust bank charter. This move is significant as it would place Paxos under federal oversight, complementing its existing multi-jurisdictional regulatory framework [1].

The OCC's oversight would add to Paxos's regulatory milestones across Europe and Asia, where it is already prudentially regulated by the Finnish Financial Supervisory Authority, the Monetary Authority of Singapore, and Abu Dhabi Global Market's Financial Services Regulatory Authority. This move also sees Paxos join other top digital asset platforms and companies, such as Circle and Ripple, in seeking banking licenses in the United States [1].

Paxos's application for a trust bank license comes after it first filed for a national bank license in 2020, with preliminary conditional approval granted in 2021. However, the application expired in 2023. The company's CEO, Charles Cascarilla, stated that this new application is rooted in Paxos's belief in the transformative power of blockchain and its commitment to maintaining the highest standards of safety and transparency [2].

Upon approval, Paxos would continue to offer enterprise partners and consumers the safest, most trusted infrastructure available. All Paxos-issued assets will remain fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption. Customers can expect uninterrupted service and a seamless transition during this regulatory shift [1].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250811ny47931/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency
[2] https://crypto.news/paxos-applies-for-u-s-trust-bank-license-with-occ/