Crypto services provider, Paxos, has applied for a national Trust Bank charter with the Office of the Comptroller of the Currency (OCC). The firm seeks to create the Paxos National Trust, according to an application made to the OCC.
Currently, Paxos possesses a state license from the New York State Department of Financial Services (NYDFS). Dan Burstein, chief compliance officer and general counsel at Paxos, said that if the firm’s application is approved, Paxos will be the first firm of its kind to be regulated at the state and federal level.
Paxos issues a stablecoin among other services, including digital asset insurance, securities clearing, commodities trading, gold custody and cash custody. With a national trust bank charter, Paxos will efficiently operate beyond New York State and across the U.S. while ensuring the highest levels of compliance.
Burstein said in a statement that the charter would help the firm achieve its goal of modernizing financial market infrastructure by expanding its operations to all U.S. states. Further, holding both state and national trust charters will enhance the firm’s approach to innovation according to the regulation.
More Startups Seeking Federal Regulation
Paxos’s application is just the latest. BitPay and Anchorage have already applied for federal charters, though Anchorage’s application progress in early November is still unclear. BitPay’s application will undergo a 30-day comment period, after which a decision will be made to approve or turn down the application.
Despite no guarantee that the firms will be granted the charters, OCC’s acting Comptroller Brian Brooks has spoken positively of crypto firms. Brooks has said that he would like to see the firms secure federal charters to have seamless operations.
Paxos’s latest move comes a few weeks after the firm started powering PayPal’s new service that allows its users to buy, sell, or hold cryptocurrencies. Paxos has maintained a regulation-first approach, and this must have made it the top choice for PayPal’s crypto service. Securing the federal charter will expand Paxos and its clients’ possibilities, making it a trusted crypto service provider.
