Paxos Seeks OCC Federal Charter to Boost Stablecoin Trust
Crypto firm Paxos filed an application with the US Office of the Comptroller of the Currency (OCC) for a national trust bank charter to convert its New York state license into a federal charter. The move brings its stablecoins—Pax Dollar (USDP), PayPal USD (PYUSD) and earlier USDG—under uniform federal oversight. Following similar filings by Circle’s USDC and Ripple’s RLUSD, CEO Charles Cascarilla said OCC supervision would enhance compliance, transparency and consumer protection. A federal charter aligns with the new GENIUS Act, simplifying rules, attracting institutional partners and potentially setting a regulatory precedent. Traders will watch the OCC decision as it could influence stablecoin market stability and institutional adoption.
Bullish
By seeking an OCC federal charter, Paxos aims to standardize oversight and strengthen transparency for its stablecoins. In the short term, the announcement may boost trader confidence in USDP and PYUSD, reducing volatility and increasing trading volumes. Over the long term, clearer regulation under the GENIUS Act can attract institutional investors and solidify market infrastructure, supporting broader adoption and price stability of Paxos’ stablecoins. Similar filings by Circle and Ripple have been seen positively by markets, indicating a bullish outlook for regulated stablecoins.