Paxos has applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust charter, aiming to upgrade its existing New York Department of Financial Services (NYDFS) license. The move is intended to place the blockchain and tokenisation firm under direct federal oversight while expanding its reach in global financial markets.
If granted, the charter would allow Paxos to operate as a nationally regulated trust, giving it the authority to hold customer assets, accept deposits, and issue loans under U.S. banking law. The firm is already supervised by regulators in multiple jurisdictions, including the Finnish Financial Supervisory Authority, the Monetary Authority of Singapore, and the Abu Dhabi Financial Services Regulatory Authority.
Paxos co-founder and CEO Charles Cascarilla said OCC oversight would reinforce the company’s commitment to building a secure and dependable blockchain-based financial infrastructure. He emphasised that Paxos has spent more than a decade setting a high standard for regulatory compliance in the industry.
The company’s stablecoins, PayPal USD (PYUSD) and Pax Dollar (USDP), are each backed one-to-one with reserves held in U.S. dollars, Treasury bills, and other cash equivalents, ensuring full redemption value. Paxos first obtained its NYDFS trust charter in 2015 and went on to launch the first regulated stablecoin in 2018, setting an early benchmark for transparency in the digital asset space.
This filing marks the second time Paxos has sought a national bank charter, following a 2020 application that received conditional approval in 2021 before expiring in 2023. If successful, it would join Anchorage Digital as one of the few U.S.-based digital asset firms with such a license. The company says the step is part of its long-term plan to strengthen compliance while expanding its global footprint.
