Paxos seeks US national trust bank charter, joining Circle and Ripple for deeper financial integration.

Paxos seeks US national trust bank charter, joining Circle and Ripple for deeper financial integration.

Paxos, a leading regulated blockchain infrastructure and tokenization platform, has announced its intention 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 will place Paxos under federal oversight and underscores its commitment to maintaining the highest regulatory standards [1].

Since 2015, Paxos has operated under the oversight of the NYDFS, becoming the first blockchain and tokenization company to be granted a limited purpose trust charter. In 2018, Paxos issued the first regulated stablecoin, demonstrating its early commitment to regulatory compliance. The pursuit of an OCC national trust charter will reinforce Paxos's commitment to maintaining global standards for safety and transparency [1].

Upon approval, Paxos would be regulated by the OCC in the United States, alongside existing oversight from FIN-FSA in Europe, MAS in Singapore, and FSRA in the Abu Dhabi Global Market. This multi-jurisdictional framework provides unmatched access to Paxos solutions and assets to enterprises worldwide [1].

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. OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency" [1].

The transition to federal oversight is expected to be seamless, with all Paxos-issued assets remaining fully backed by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption. Customers can expect uninterrupted service during this transition [1].

This move by Paxos follows a broader trend in the stablecoin industry towards increased transparency and regulatory alignment. Tether, Circle, and Paxos have recently announced updates to their strategies, emphasizing transparency, reserve composition, and market expansion to meet regulatory expectations [2]. Experts predict that continued regulatory alignment and transparency measures could drive long-term growth for stablecoins, enhancing market stability during volatility [2].

The pursuit of a national trust bank charter by Paxos aligns with the broader trend of stablecoin issuers seeking deeper financial integration and regulatory compliance. By joining Circle and Ripple in this endeavor, Paxos aims to solidify its position as a leader in the blockchain and tokenization industry, providing investors and enterprises with a trusted and compliant infrastructure for digital assets.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250811ny47931/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency
[2] https://www.ainvest.com/news/tether-circle-paxos-boost-transparency-reserves-market-expansion-2508/