Paxos, the blockchain and tokenization platform, has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to transform its current New York Department of Financial Services (NYDFS) trust charter into a national trust charter.
The action is to broaden its federal regulation and global compliance framework.
Paxos announced the new national trust charter would directly subject Paxos to OCC regulation, in addition to its current supervision by the Finnish Financial Supervisory Authority (FIN-FSA), the Monetary Authority of Singapore (MAS), and the Abu Dhabi Financial Services Regulatory Authority (FSRA).
This would further increase its capacity to offer blockchain-based financial infrastructure globally.
“For more than a decade, Paxos has been the gold standard of blockchain regulation,” stated Charles Cascarilla, Paxos CEO and co-founder. “OCC supervision will further cement our dedication to providing the most secure, most reliable infrastructure for consumers and businesses.”
By having a national trust charter, Paxos would have the authority to hold customers’ assets, take deposits, and grant loans in accordance with U.S. banking law.
Its stablecoins PayPal USD (PYUSD) and Pax Dollar (USDP) are both collateralized in full by U.S. dollars, U.S. Treasuries, and cash equivalents and guaranteed 1:1 redemption.
The filing is Paxos’s second national bank charter filing, following on from one in 2020 that was conditionally approved in 2021 but lapsed in 2023.
Established in 2015, Paxos was the first blockchain company to receive a limited-purpose trust charter from NYDFS. In 2018, it launched the first regulated stablecoin, establishing an early standard for transparency and compliance within the digital assets market. It serves enterprise partners and consumers in several jurisdictions today.
Other companies, such as Circle and Ripple, are also seeking such charters, though Anchorage Digital is the only U.S.-based digital asset platform so far to be in possession of one.
Paxos wants to use this step to build further globally while continuing its long-standing track record on security, transparency, and compliance.
Also Read: Paxos Fined $48.5M by NYDFS Over Binance and AML Failures
