Paxos applies for U.S. trust bank license with OCC

2025/08/12 01:00

Paxos, one of the leading regulated stablecoin issuers and tokenization platforms, has filed for regulatory approval to become a national trust bank.

Summary
  • Paxos has applied for a national trust charter license from the Office of the Comptroller of the Currency.
  • The crypto company eyes regulatory approval to convert its New York issued charter to a national trust charter.
  • Paxos joins Circle and Ripple among companies seeking banking licenses in the U.S.

Paxos, which issues PayPal USD (PYUSD) and Pax Dollar (USDP) stablecoins, announced that it is looking to convert its New York Department of Financial Services trust charter into a national trust bank charter. 

The company’s application for a trust bank license is with the Office of the Comptroller of the Currency. Approval to convert from an NYDFS-regulated trust to a national charter would allow Paxos to manage and hold assets on its customers’ behalf. A national trust charter would also allow the Pax Dollar issuer to accept cash deposits and offer loans under applicable regulation.

Circle, Ripple also eye banking licenses

Paxos became the first blockchain firm to obtain a limited trust charter from NYDFS in 2015. The company first filed for a national bank license in 2020, and regulators gave preliminary conditional approval in 2021. However, the application hit a snag and expired in 2023.

Commenting further on the fresh application, Paxos CEO Charles Cascarilla, said:

OCC oversight will add to regulatory milestones across Europe and Asia with the Finnish Financial Supervisory Authority, the Monetary Authority of Singapore, and Abu Dhabi Global Market’s Financial Services Regulatory Authority.

The move also sees Paxos join other top digital asset platforms and companies eyeing banking licenses in the United States. 

Circle, the publicly-traded stablecoin issuer of USDC (USDC) and Ripple, the company behind the XRP (XRP) cryptocurrency and Ripple USD stablecoin, recently filed for national trust bank charters. At the moment, Anchorage Digital is the only U.S.-based digital asset platform with a national trust bank charter.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

$30T Tokenization Market: Chainlink Partners with ICE for Secure Onchain FX, Metals Data

$30T Tokenization Market: Chainlink Partners with ICE for Secure Onchain FX, Metals Data

Key Takeaways: ICE’s data integration into blockchain platforms could encourage cross-industry discussions on common technical and compliance frameworks. Expanding tokenized markets may drive collaboration between regulators, traditional exchanges, and blockchain providers to align reporting and settlement protocols. Future on-chain data integrations could include emerging asset classes beyond those currently served, depending on market demand and policy direction. Chainlink has partnered with Intercontinental Exchange (ICE) to provide foreign exchange and precious metals rates onchain through Chainlink Data Streams, according to a press release published on August 11. The arrangement uses ICE’s Consolidated Feed, which compiles pricing from over 300 exchanges and marketplaces, as a contributor to Chainlink’s derived FX and metals data. ICE Data Feed to Power Chainlink This information will be distributed to more than 2,000 applications, financial institutions, and infrastructure providers within the Chainlink ecosystem. Maurisa Baumann, Vice President of Global Data Delivery Platforms at ICE, said the feed offers “trusted, structured multi-asset class data to banks, asset managers, and ISVs located around the world.” She added, “We’re happy to work with Chainlink to securely and reliably provide data for on-chain markets, which is an important step in growing the global blockchain economy.” We’re excited to announce that Intercontinental Exchange ( @ICE_Markets ) and Chainlink are collaborating to allow Chainlink to now bring high-quality derived forex and precious metals data onchain. https://t.co/hchILh0073 ICE is a global financial powerhouse that operates… pic.twitter.com/Tw4BdtCxDC — Chainlink (@chainlink) August 11, 2025 Chainlink said the integration supports the development of new tokenized asset types by supplying DeFi applications with tamper-resistant data that meets traditional market requirements. ICE will serve as one of several providers for Chainlink’s data sets, which are designed to support low-latency, high-frequency settlement. Fernando Vazquez, President of Capital Markets at Chainlink Labs, described the collaboration as “a watershed moment in the evolution of global markets,” pointing to the role of on-chain infrastructure in accommodating large-scale tokenization. Combining TradFi and Blockchain Infrastructure The companies said that with tokenized real-world asset markets projected to reach $30.1 trillion, demand for secure, institutional-grade data services is expected to grow. While the current scope covers FX and precious metals, industry observers note that partnerships between data vendors and blockchain infrastructure providers could expand into equities, fixed income, and other asset classes, depending on regulatory developments and adoption trends. Integrations of traditional market data into blockchain-based systems are also being closely watched by financial regulators, who are weighing how such services fit into existing compliance frameworks and market oversight practices. These integrations and collaborations show the way to a more hybrid financial system , where traditional market infrastructure and blockchain-based networks operate in parallel, supporting cross-platform settlement and shared data standards.
Share
CryptoNews2025/08/12 00:29