Paxos Applies for National Trust Bank Charter to Strengthen Federal Oversight and Market Credibility

Paxos Trust Company has formally submitted an application to the Office of the Comptroller of the Currency (OCC) to obtain a national trust bank charter, signaling a strategic shift from its current New York state oversight to federal regulation [1]. This move is part of a broader industry trend, as stablecoin issuers increasingly seek to operate under a consistent and credible regulatory framework. Paxos, which issues the PayPal-backed stablecoin PYUSD, aims to replace its existing New York Department of Financial Services (NYDFS) charter with a national charter under federal oversight [2]. The company emphasized that the transition will enhance transparency, operational robustness, and trust across its services.

Charles Cascarilla, Paxos’ CEO and co-founder, stated that the move reflects the company’s commitment to providing a “safest, most trusted infrastructure” for enterprise partners and consumers [3]. He added that the OCC’s oversight would reinforce Paxos’ long-standing dedication to maintaining the highest standards of safety and transparency in the digital asset space. This strategic shift is also seen as a continuation of Paxos’ efforts to align with evolving regulatory expectations and expand its market presence under a unified legal framework.

The application is not entirely new. Paxos had previously submitted a similar request in 2021, which received conditional approval but ultimately expired in 2023 without final authorization [5]. The renewed submission indicates the company’s confidence in the current regulatory environment and its readiness to meet the updated requirements for national banking status. It also aligns with broader legislative developments, such as the recent passage of the GENIUS Act, which introduced federal rules for stablecoin issuers [4].

Paxos’ move mirrors similar efforts by other major players in the stablecoin industry. Circle, the issuer of the $65 billion USDC, and Ripple, the issuer of RLUSD, have also applied for national trust bank charters from the OCC. These firms are positioning themselves to operate under federal standards, a shift that is expected to enhance institutional confidence and reduce compliance risks [6]. The growing trend of stablecoin issuers seeking national charters highlights the sector’s increasing integration into the traditional financial system.

The renewed application by Paxos underscores the evolving relationship between innovation and regulation in the crypto space. As the industry matures, the demand for clarity, consistency, and credibility in oversight mechanisms is rising. The OCC’s role in granting national trust charters is becoming increasingly pivotal, shaping the future of a financial ecosystem that is becoming more digital and decentralized.

Source:

[1] Cointelegraph – https://cointelegraph.com/news/paxos-us-bank-license-stablecoin-rules

[2] CoinDesk – https://www.coindesk.com/policy/2025/08/11/paxos-applies-for-national-bank-trust-charter-joining-stablecoin-issuers-circle-ripple

[3] AInvest – https://www.ainvest.com/news/paxos-reapplies-national-trust-bank-charter-expand-operations-2508/

[4] Bitcoin.com – https://news.bitcoin.com/report-paxos-seeks-us-trust-bank-license-from-occ/

[5] Law360 – https://www.law360.com/articles/2375811/paxos-is-latest-crypto-firm-to-seek-occ-bank-charter

[6] Yahoo Finance – https://finance.yahoo.com/news/stablecoin-issuer-paxos-follows-circle-182044267.html