Paxos Seeks OCC Approval for National Trust Bank Charter

Paxos has reapplied to convert its New York limited-purpose trust charter into a National Trust Bank Charter under the US Office of the Comptroller of the Currency (OCC). This Paxos National Trust Bank Charter application would allow the firm to custody customer assets and settle payments nationwide under federal oversight, though it would still be barred from taking deposits or issuing loans. The New York conditional approval granted in 2021 lapsed in March 2023. Paxos ceased issuing Binance’s BUSD and reached a $48.5 million settlement with the New York Department of Financial Services, paying a $26.5 million fine and committing $22 million to compliance upgrades. The move comes alongside the enactment of the GENIUS Act, the first federal stablecoin framework that bans yield-bearing tokens. Industry experts predict this regulation will drive institutions toward tokenization markets. Projects such as Uniform Labs’ Multiliquid are developing infrastructure for real-time conversion between tokenized assets and stablecoins. Anchorage Digital remains the only crypto firm to hold a similar federal charter. Other issuers, including Circle and Ripple, are pursuing national trust charters. The Paxos National Trust Bank Charter effort underscores the firm’s bid to enhance compliance and institutional appeal in the evolving stablecoin landscape.