Paxos renews push for US bank license as stablecoin rules take shape

Paxos has reapplied for a US national trust bank charter after its 2021 conditional approval expired.

Paxos Trust Company, the crypto infrastructure company behind PayPal’s PYUSD stablecoin, has filed to convert its New York limited-purpose trust charter into a US national trust bank charter, renewing an effort that expired in 2023.

If approved, the federal charter, issued by the Office of the Comptroller of the Currency (OCC), would allow Paxos to custody customer assets and settle payments nationwide under federal oversight, potentially boosting its appeal to institutional clients. Unlike traditional banks, a national trust bank cannot accept cash deposits or issue loans.

“OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency," Paxos co-founder and CEO Charles Cascarilla said in a statement.

Read more