Paxos Submits National Bank Trust Charter Application to U.S. Regulators

Paxos, a leading stablecoin issuer, has submitted an application for a national bank trust charter to the U.S. Office of the Comptroller of the Currency (OCC), following in the footsteps of other major stablecoin players like Ripple and Circle. The move reflects a broader trend among crypto firms to seek federal oversight as they aim to enhance regulatory clarity, institutional trust, and operational scalability. By transitioning from its current New York-based state license to a national charter, Paxos aims to streamline compliance and position itself as a more credible partner for banks, payment processors, and institutional clients.

Paxos is known for issuing stablecoins such as PayPal USD (PYUSD) and Pax Dollar (USDP), which are designed to maintain a 1:1 peg with the U.S. dollar. These tokens are widely used for payments, trading, and fund transfers. With the growing regulatory focus on stablecoins, securing a federal license is seen as a strategic step for Paxos to reinforce its infrastructure as “safe and reliable,” as emphasized by CEO Charles Cascarilla in a recent press release.

This is not the first time Paxos has pursued a national charter. The company had previously applied in 2023, but the application lapsed without approval. Its renewed submission suggests a stronger and more comprehensive proposal, likely supported by its existing New York license, which comes with stringent compliance requirements. The company believes that a federal charter would help it build on this solid foundation and expand its services nationally without the complexity of varying state regulations.

The timing of the application coincides with the enactment of the GENIUS Act, a new federal law signed by President Donald Trump that outlines updated guidelines for stablecoin operations. This legislative shift underscores the growing importance of federal oversight in the crypto space. Both Ripple and Circle have also filed for national charters, signaling a growing consensus among stablecoin issuers that federal regulation is essential for mainstream acceptance and market stability.

The broader industry trend of applying for federal charters indicates a strategic shift toward aligning with traditional financial regulations. This move is intended to foster institutional credibility and support the sector’s long-term growth. If approved, Paxos would be subject to OCC regulation, which is known for its high standards, including requirements to demonstrate risk management capabilities, legal compliance, and customer protection.

While some in the crypto community remain skeptical of increased regulation, fearing it could stifle innovation, Paxos and its peers argue that federal oversight is a necessary step for responsible and sustainable development. The company views regulation as a tool to build trust, both with its customers and with traditional financial partners.

The outcome of Paxos’ application will be closely watched by industry participants. A successful bid could set a new benchmark for stablecoin regulation and encourage more firms to pursue similar paths. It may also influence the direction of future federal legislation, as policymakers observe how the industry responds to national oversight frameworks.

The regulatory momentum is expected to continue, with more crypto and fintech companies likely to follow suit as the U.S. regulatory landscape becomes more defined. This trend reflects the maturation of the stablecoin market and the industry’s commitment to engaging proactively with regulators to ensure stability and trust.

Source:

[1] CoinDesk, "Paxos Applies for National Bank Trust Charter, Joining Stablecoin Issuers Circle, Ripple," https://www.coindesk.com/policy/2025/08/11/paxos-applies-for-national-bank-trust-charter-joining-stablecoin-issuers-circle-ripple

[2] Cointelegraph, "Paxos Renews Push for US Bank License as Stablecoin Rules Evolve," https://cointelegraph.com/news/paxos-us-bank-license-stablecoin-rules

[3] eMarketer, "Paxos Joins Fintechs and Crypto Firms Jostling for US Banking Charter," https://www.emarketer.com/content/paxos-joins-fintechs-crypto-firms-applying-us-banking-charter

[4] dlnews.com, "Paxos Is Applying to Become a US Bank," https://www.dlnews.com/articles/snapshot/paxos-applying-to-become-us-bank-heres-why-that-matters/

[5] CoinCentral, "Paxos Makes Second Push for US Banking License After $48M Binance Fine," https://coincentral.com/paxos-makes-second-push-for-us-banking-license-after-48m-binance-fine