Paxos Becomes the Latest Stablecoin Issuer to Apply for a National Bank Trust Charter

TL;DR

• Paxos has joined other stablecoin issuers, Circle and Ripple, in applying for a national bank trust charter with the OCC.

• The license will allow Paxos to convert its New York state oversight into federal supervision.

Paxos Applies for a National Bank Trust Charter

Stablecoin issuer firm Paxos has applied for a national bank trust charter with the Office of the Comptroller of the Currency (OCC). This latest development sees Paxos join other leading stablecoin companies in seeking federal regulatory oversight.

Paxos announced that it intends to convert its New York Department of Financial Services (NYDFS) trust charter into a national one. The company issues the PYUSD stablecoin for payments firm PayPal, and it's also a founding member of the consortium behind the Global Dollar (USDG) token.

In its press release,  Charles Cascarilla, CEO and co-founder of Paxos, stated that,

"[The] OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency."

This latest development comes as the competition in the stablecoin industry heats up, thanks to President Donald Trump signing the GENIUS Act into law last month. The law improves regulatory clarity for the stablecoin sector as more players enter the game. Paxos’s competitors, Circle (CRCL), the company behind the $65 billion USDC (USDC) token, and Ripple, issuer of RLUSD, applied for national bank trust charters last month.