Paxos Submits Application for U.S. National Trust Bank Charter

Paxos Trust Company has submitted a formal application to the Office of the Comptroller of the Currency (OCC) for a U.S. national trust bank charter, signaling a strategic shift from state-level supervision under the New York Department of Financial Services (NYDFS) to federal oversight [1]. The move aims to enable Paxos to expand its custody and payment services nationwide under a single regulatory framework, aligning with broader industry efforts to secure formal banking credentials [5].

This is not the first attempt by Paxos to obtain a national charter. The firm initially applied in 2020 and received conditional approval in 2021, but the charter expired due to unmet requirements. In 2025, Paxos has refiled, this time seeking to convert its existing New York trust charter into a national one [4]. If approved, the charter would allow Paxos to operate under federal oversight without the need for multiple state licenses, potentially enhancing its credibility in the institutional market [6].

Paxos CEO Charles Cascarilla has emphasized that the application reflects the firm’s commitment to maintaining “the highest standards of safety and transparency.” The company currently operates under regulatory oversight in multiple jurisdictions, including Singapore, Europe, and Abu Dhabi [7]. Cascarilla noted that the move supports Paxos’ vision to provide secure infrastructure for enterprise clients and consumers in the digital asset space.

The timing of the application is strategic, coinciding with the recent enactment of the GENIUS Act, which provides a clearer regulatory framework for stablecoins and digital assets. As issuer of PayPal’s PYUSD stablecoin, Paxos views this development as an opportunity to scale its services nationally. The company has a history of innovation in digital assets, having launched the first regulated stablecoin in 2018 under its NYDFS charter [8].

However, the application process remains challenging. The American Bankers Association and other regulatory stakeholders have urged the OCC to provide more transparency regarding the chartering process, citing concerns over the lack of detail in public filings. There are also broader concerns about the implications of granting national charters to entities without traditional banking functions [9]. Despite these hurdles, Paxos continues to expand its partnerships, including collaborations with Mastercard, Interactive Brokers, and MercadoLibre.

The outcome of Paxos’ application will be closely watched by the crypto industry, as it joins similar efforts by firms like Circle and Ripple. The result could shape the regulatory landscape for digital asset providers seeking to operate at scale within the U.S. financial system. If granted, the charter would position Paxos as one of the few digital asset firms with full federal banking oversight, reinforcing its role as a key player in the evolving stablecoin and blockchain infrastructure space.

Sources:

[1] https://www.reuters.com/sustainability/boards-policy-regulation/paxos-joins-spate-crypto-companies-applying-us-trust-bank-licenses-2025-08-11/

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

[3] https://cointelegraph.com/news/paxos-us-bank-license-stablecoin-rules

[4] https://www.ainvest.com/news/paxos-renews-bid-federal-trust-bank-charter-regulatory-shifts-2508/

[5] https://www.bitcoinsensus.com/news/regulations/paxos-applied-for-an-occ-national-trust-charter

[6] https://www.cryptopolitan.com/paxos-becomes-latest-crypto-firm-to-seek-u-s-national-trust-bank-license/

[7] https://www.ainvest.com/news/paxos-resubmits-trust-bank-charter-application-regulatory-shift-2508/

[8] https://www.prnewswire.com/news-releases/paxos-to-pursue-national-trust-charter-with-the-office-of-the-comptroller-of-the-currency-302525660.html

[9] https://cryptonews.com/news/trumps-crypto-empire-makes-1-5b-bet-on-its-own-wlfi-token/

[10] https://cryptonews.com/news/paxos-trust-company-has-agreed-to-a-48-5-million-settlement-with-the-new-york-state-department-of-financial-services-dfs-over-allegations-it-failed-to-monitor-illicit-activity-tied-crypto-exchange-binance/

[11] https://cryptonews.com/news/ripple-has-applied-for-a-national-banking-license-from-the-occ-seeking-federal-oversight-for-its-ripple-usd-stablecoin-rlusd/