Paxos Seeks National Trust Bank Charter to Expand Crypto Banking Services

Paxos, a major regulated stablecoin issuer and blockchain infrastructure provider, has submitted an application to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This initiative aims to replace its existing New York Department of Financial Services (NYDFS) trust charter and broaden its ability to offer banking-related services, including managing and holding customer assets, accepting cash deposits, and offering loans under federal oversight [2]. The move aligns with a growing trend among blockchain companies seeking traditional banking licenses, including Circle and Ripple [1].

The national trust bank charter would significantly enhance Paxos’s regulatory standing and allow it to operate with greater transparency and credibility in the digital asset sector. The company’s CEO, Charles Cascarilla, emphasized that this step reflects Paxos’ ongoing commitment to providing the safest infrastructure for both enterprise partners and individual users [1]. The firm previously obtained a limited trust charter from NYDFS in 2015 and had a prior national bank license application filed in 2020, which received conditional approval but ultimately expired in 2023 [2].

Regulatory developments have created a more favorable environment for crypto firms seeking traditional banking credentials. The passage of the GENIUS Act and the OCC’s May 2025 announcement allowing national banks to custody and manage crypto assets have paved the way for greater integration of digital assets into the traditional financial system [2]. These legislative and regulatory shifts are enabling companies like Paxos to operate with clearer legal parameters and greater access to mainstream financial infrastructure.

Paxos has also taken steps to strengthen its compliance posture, including resolving a 2023 settlement with New York regulators regarding the launch of a Binance stablecoin. As part of that agreement, the company paid $26.5 million to New York’s Department of Financial Services [2]. This recent compliance action underscores the importance of maintaining strong regulatory standards in the rapidly evolving digital asset space.

The company’s services extend beyond stablecoin issuance to include tokenization, custody, and trading solutions for major financial institutions such as Mastercard, Interactive Brokers, and MercadoLibre. Paxos has long advocated for robust regulatory frameworks to support the legitimacy and scalability of the digital asset industry [2]. By pursuing a national trust bank charter, it is positioning itself to play a key role in shaping the future of regulated digital finance in the United States.

This strategic move also reflects a broader industry shift, as crypto firms seek to align with traditional financial regulations to build trust with institutional investors and regulators. With the only U.S.-based digital asset company currently holding a national trust bank charter being Anchorage Digital, the competitive landscape is intensifying [1]. If approved, Paxos’ charter would represent a significant milestone in its journey to becoming a fully integrated player in both the digital and traditional financial sectors.

Source:

[1] AInvest, [https://www.ainvest.com/news/paxos-pursues-national-trust-bank-charter-expand-crypto-operations-2508/](https://www.ainvest.com/news/paxos-pursues-national-trust-bank-charter-expand-crypto-operations-2508/)

[2] Decrypt, [https://decrypt.co/334534/stablecoin-issuer-paxos-follows-circle-ripple-applying-us-banking-license](https://decrypt.co/334534/stablecoin-issuer-paxos-follows-circle-ripple-applying-us-banking-license)

[3] AOL.com, [https://www.aol.com/3-predictions-stablecoins-2030-090400566.html](https://www.aol.com/3-predictions-stablecoins-2030-090400566.html)