Paxos Seeks US Trust Bank License in OCC National Charter Application

Highlights:

• Paxos seeks U.S. trust bank license to boost federal oversight.
• The approval would allow Paxos to hold assets and settle payments.
• The firm joins Ripple and Circle in applying for OCC trust charters.

Paxos, the cryptocurrency firm behind PayPal’s stablecoin PYUSD, has registered an application with the U.S. Office of the Comptroller of the Currency. According to the press release, the company wants to convert its limited-purpose trust charter in New York into a national one. The move would put Paxos under direct federal supervision, which would aid its competitiveness in the digital asset industry.

Paxos became regulated by the New York State Department of Financial Services in 2015. The company became the first blockchain corporation to obtain a limited-purpose trust charter. It also launched the first regulated stablecoin in 2018. The approval of the application would enable Paxos to be in a position to hold assets of its customers and settle payments faster. The license would, however, not allow taking of deposits or issuance of loans. According to the firm, the move will not shift the business model of the firm but will strengthen its international regulatory status.

Today, we announced that we have filed an application to convert our NYDFS trust charter into a national trust charter under the Office of the Comptroller of the Currency.https://t.co/gVMdwteuLI

— Paxos (@Paxos) August 11, 2025

Federal Oversight and Global Reach

Charles Cascarilla, CEO, stated:

“With a national trust bank charter, we are furthering our commitment to provide enterprise partners and consumers with the safest, most trusted infrastructure possible. OCC supervision will assist us in building upon our historic legacy of adhering to the highest levels of safety and transparent practice.”

The company is already registered with regulatory regimes in Europe, Singapore and Abu Dhabi. Moreover, assets issued by Paxos will be fully backed by reserves in U.S. dollars and treasuries and cash equivalents. This gives a one-to-one redemption guarantee to customers. The company anticipates seamless operations in its transition.

If authorized, Paxos would become one of the few crypto companies to hold a national trust bank charter, along with Anchorage Digital. The shift would also provide businesses around the globe with deeper access to Paxos blockchain infrastructure and tokenization services.

Industry Context and Compliance Developments

Paxos seeking a US Trust Bank License comes at a time when other crypto firms are making similar moves. Ripple and Circle have recently submitted OCC trust charter applications. These licenses provide a greater level of federal recognition than the state charters. This is the second time Paxos is trying to secure the charter. It was granted preliminary approval in 2021, and the application lapsed in 2023. This new bid by the firm follows a $48.5 million settlement with New York regulators following a non-compliance issue.

NEW: DFS has secured a $48.5 Million settlement with Paxos Trust Company for anti-money laundering deficiencies and diligence failures.

DFS remains committed to ensuring a fair and equitable financial system for all New Yorkers.

See the full release: https://t.co/q8QuqRfP4i pic.twitter.com/P2wj6n17Yo

— NYDFS (@NYDFS) August 7, 2025

The agreement entailed a $26.5 million penalty and $22 million to be used to enhance anti-money laundering programs. Regulators asserted that Paxos did not conduct sufficient due diligence of Binance during their partnership. Following the investigation, the company ceased issuing Binance USD in early 2023.

The adoption of stablecoins is increasing, with proponents viewing them as an alternative, faster method of transferring funds. The PayPal PYUSD by Paxos has a market capitalization valued at over $1 billion. The recently signed U.S. law on the regulations of stablecoins may additionally increase the credibility of the industry.