Paxos Applies for U.S. National Trust Bank License to Expand Regulatory Alignment

Paxos Trust Company has submitted an application for a U.S. national trust bank license through the Office of the Comptroller of the Currency (OCC), seeking to transition from its current state-based regulation under the New York Department of Financial Services (NYDFS) to federal oversight. This move, first announced on August 1, 2025, aligns Paxos with other major stablecoin issuers like Circle and Ripple, which have similarly sought national charters to operate under a consistent regulatory framework across the United States. The application reflects a broader industry strategy among crypto firms to enhance institutional trust and regulatory clarity [1].

Paxos is seeking to convert its existing New York limited purpose trust charter into a national trust bank charter, a process that requires adherence to pre-opening requirements set by the OCC. The company previously applied for a national bank charter in 2020, but that attempt lapsed in 2023. This renewed effort follows a $26.5 million settlement with NYDFS in August 2025 over alleged due diligence issues related to its partnership with Binance. The recent regulatory settlement appears to have paved the way for Paxos to re-engage with federal regulators [2].

Obtaining a national trust bank charter would allow Paxos to operate more efficiently across state lines, avoiding the need for multiple state licenses and thereby streamlining compliance. However, it is important to note that such a charter would not permit Paxos to function as a traditional depository institution—meaning it would remain unable to accept deposits or issue loans. Instead, the charter would primarily expand its custodial and trust-related services, which are central to its role in the stablecoin ecosystem [3].

The timing of the application coincides with a favorable shift in the U.S. regulatory environment. In July 2025, President Donald Trump signed the Genius Act into law, which legalizes the use of stablecoins within the country. This development could create a more supportive regulatory climate for Paxos’ application, although final approval remains contingent on the OCC’s evaluation. The agency has historically maintained a cautious stance on granting such charters to crypto companies [4].

A national trust bank charter could significantly enhance Paxos’ market position, particularly in relation to its stablecoin offerings such as PayPal’s PYUSD. Institutional investors and partners are increasingly prioritizing regulatory alignment when choosing financial infrastructure providers, and a charter from the OCC would signal a higher level of operational credibility. The move also reflects broader industry trends, with firms like Anchorage Digital previously securing similar authorizations [5].

Paxos’ renewed application underscores its long-term strategy to become a trusted infrastructure provider in the evolving crypto-asset landscape. The company has shown resilience in navigating regulatory challenges, and its pursuit of a national trust bank license represents a key step in its vision to deepen integration with traditional financial systems while maintaining innovation in digital assets [6].

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[1] title: Paxos Seeks U.S. National Trust Bank Charter to Enhance ...

url: https://www.ainvest.com/news/paxos-seeks-national-trust-bank-charter-enhance-regulatory-alignment-2508/

[2] title: Paxos Makes Second Push for US Banking License After ...

url: https://coincentral.com/paxos-makes-second-push-for-us-banking-license-after-48m-binance-fine/

[3] title: DL News - Paxos is applying to become a US bank

url: https://www.dlnews.com/articles/snapshot/paxos-applying-to-become-us-bank-heres-why-that-matters/

[4] title: DL News - Paxos is applying to become a US bank

[5] title: CoinDesk - Paxos Applies for National Bank Trust Charter

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

[6] title: Paxos to Pursue National Trust Charter with the Office of the ...

url: https://www.paxos.com/newsroom/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency