Paxos Seeks U.S. National Trust Bank Charter to Enhance Regulatory Alignment

Paxos, a major stablecoin issuer and blockchain infrastructure provider, has submitted an application for a U.S. national trust bank charter with the Office of the Comptroller of the Currency (OCC) [1]. This step brings the company in line with other significant stablecoin players, such as Ripple and Circle, who have also pursued similar federal charters in recent months [2]. The application seeks to replace Paxos’ existing New York Department of Financial Services (NYDFS) charter with a federal oversight framework, aiming to improve transparency and regulatory alignment [3].

The company’s previous attempt to secure a national bank charter in 2020 ended with an expired conditional approval from the OCC in 2023 [4]. The current initiative reflects a broader regulatory environment becoming more accommodating to crypto firms. A growing number of digital asset companies are seeking federal charters to strengthen their legal and operational foundations [5]. Paxos has emphasized that the transition from a state to a federal charter will not change its core business model but will enhance confidence among enterprise partners and consumers [6].

Paxos CEO Charles Cascarilla stated that “OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency” [7]. The move is also strategically motivated by evolving U.S. regulatory developments and global efforts to formalize digital asset frameworks. Recently, Paxos reached a $48.5 million settlement with NYDFS over anti-money laundering (AML) failures in its relationship with Binance [8]. This highlights the increasing regulatory pressure on crypto firms and the need for robust compliance frameworks—areas the national trust charter is expected to address.

If approved, the charter will place Paxos under direct federal supervision, ensuring its operations align with national banking standards [9]. The process is expected to be thorough and involve detailed reviews by the OCC. The company’s action is indicative of a broader trend in the crypto industry, with firms seeking greater clarity and legitimacy through formal chartering [10]. Paxos, which underpins PayPal’s PYUSD stablecoin and has played a key role in digital asset infrastructure, is positioning itself as a trusted and compliant player in the fast-developing fintech landscape [11].

Source:

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

[2] Finextra, (https://www.finextra.com/newsarticle/46433/paxos-applies-for-national-trust-charter)

[3] dlnews.com, (https://www.dlnews.com/articles/snapshot/paxos-applying-to-become-us-bank-heres-why-that-matters/)

[4] Yahoo Finance, (https://finance.yahoo.com/news/exclusive-paxos-joins-spate-crypto-144209798.html)

[5] Paxos, (https://www.paxos.com/newsroom/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency?utm_medium=paxosx&utm_source=organicsocial)

[6] Cointelegraph, (https://cointelegraph.com/news/paxos-us-bank-license-stablecoin-rules)

[7] AInvest, (https://www.ainvest.com/news/paxos-submits-national-bank-trust-charter-application-regulators-2508/)

[8] The Paypapers, (https://thepaypapers.com/crypto-web3-and-cbdc/news/paxos-files-application-for-national-trust-charter-with-the-occ)

[9] LeapRate, (https://www.leaprate.com/cryptocurrency/paxos-seeks-us-national-trust-charter-from-occ)

[11] CoinMarketCap, (https://coinmarketcap.com/community/articles/689b9d16f5c8bb5c385fcb8e/)