Paxos Seeks National Bank Trust Charter for Stablecoin Issuance

Paxos, a stablecoin issuer, has applied for a national bank trust charter with the OCC, joining Circle and Ripple. The move aims to bring Paxos under federal supervision and follows similar applications by rival issuers. Paxos obtained conditional approval in 2021 but was unable to receive full approval before its application expired. The company plans to convert its NYDFS trust charter into a national one.

Paxos, a leading stablecoin issuer and blockchain infrastructure provider, has submitted an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC). This strategic move aims to bring Paxos under federal supervision and follows similar applications by rival issuers like Circle and Ripple.

Established in 2015, Paxos was the first blockchain company to receive a limited-purpose trust charter from NYDFS. In 2018, it launched the first regulated stablecoin, setting an early standard for transparency and compliance within the digital assets market. Paxos serves enterprise partners and consumers in several jurisdictions today, including the United States, Europe, Singapore, and Abu Dhabi Global Market [1].

The application to the OCC is a significant step for Paxos, which has previously obtained conditional approval for a national bank charter in 2021. However, the application expired before full approval was granted. The new application seeks to secure federal oversight, which will complement Paxos's existing multi-jurisdictional regulatory framework [2].

Charles Cascarilla, CEO and co-founder of Paxos, stated, "For over a decade, Paxos has set the bar for regulatory oversight and compliance. By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available. This is rooted in our belief in the transformative power of blockchain as a force for financial freedom" [1].

Paxos's stablecoins, such as PayPal USD (PYUSD) and Pax Dollar (USDP), are fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption [1]. The company has also faced regulatory scrutiny in the past, notably a $48.5 million settlement with NYDFS over alleged anti-money laundering deficiencies and due diligence failures related to its partnership with Binance [3].

The application for the national trust charter is part of Paxos's broader strategy to expand its global footprint while maintaining its commitment to security, transparency, and compliance. If approved, Paxos will be regulated by the OCC in the United States, alongside existing oversight from FIN-FSA in Europe, MAS in Singapore, and FSRA in Abu Dhabi Global Market [1].

References:
[1] https://www.paxos.com/newsroom/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency
[2] https://www.cryptotimes.io/2025/08/12/paxos-files-for-occ-national-trust-charter-to-expand-regulation/
[3] https://cryptorank.io/news/feed/120ff-nydfs-fines-paxos-48-5m-over-aml-violations-related-to-binance-partnership