Paxos Applies for U.S. National Trust Bank Charter Amid Regulatory Shift

Paxos Trust Company has submitted a new application for a U.S. national trust bank charter under the Office of the Comptroller of the Currency (OCC), continuing its pursuit of federal regulatory oversight in the stablecoin and blockchain infrastructure space [1]. This comes after a previous 2020 filing and a conditional approval in 2021 that ultimately lapsed in 2023 without final authorization [2]. The company currently operates under a New York state trust charter and now seeks to transition to federal supervision, a move it says will enhance safety, transparency, and trust in its operations [3].

The application is part of a broader regulatory shift in the stablecoin industry, with firms increasingly seeking federal charters to align with evolving legal frameworks. Paxos joins other major players like Circle and Ripple in this effort, as the sector responds to new legislation such as the GENIUS Act, signed into law by President Donald Trump, which establishes federal oversight mechanisms for stablecoin issuers [2]. This legislative development has accelerated the trend of stablecoin firms proactively engaging with regulators to clarify compliance expectations.

Paxos, which co-issues the PYUSD stablecoin with PayPal and participates in the USDG token initiative, has positioned itself as a leader in providing regulated blockchain infrastructure [3]. The firm’s CEO, Charles Cascarilla, emphasized that the charter application reflects its long-standing commitment to maintaining the highest standards of safety and transparency. “For over a decade, Paxos has set the bar for regulatory oversight and compliance,” he stated. “By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available.”

The company claims to have raised over $500 million from major investors, including PayPal Ventures, and has obtained approvals in multiple jurisdictions [3]. If granted, the charter would place Paxos under the full regulatory authority of the OCC, potentially influencing market perception and setting a precedent for other firms navigating the regulatory landscape [1]. Analysts note that the pursuit of national charters is not just about compliance but also a strategic move to build institutional credibility and differentiate in a competitive and highly scrutinized market [1].

The outcome of Paxos’ application will be closely monitored by stakeholders, as it may shape the future regulatory trajectory of the stablecoin industry. As the OCC reviews the request, the broader implications for digital asset market dynamics will depend on how these charters are interpreted and implemented within the evolving regulatory framework [1].

Source:

[1] "Paxos joins spate of crypto companies applying for US trust..." (Reuters, https://www.reuters.com/sustainability/boards-policy-regulation/paxos-joins-spate-crypto-companies-applying-us-trust-bank-licenses-2025-08-11/)

[2] "Stablecoin News: Paxos Joins Circle, Ripple Applying for..." (CoinDesk, https://www.coindesk.com/policy/2025/08/11/paxos-applies-for-national-bank-trust-charter-joining-stablecoin-issuers-circle-ripple)

[3] "Paxos Applies for Federal Trust Bank Charter to Strengthen..." (AInvest, https://www.ainvest.com/news/paxos-applies-federal-trust-bank-charter-strengthen-regulatory-compliance-2508/)