TLDR

Paxos has applied to the Office of the Comptroller of the Currency for a national trust bank charter.
The company plans to convert its New York Department of Financial Services trust charter into a national charter.
A national charter would allow Paxos to hold customer assets and offer loans under federal regulation.
Paxos first applied for a national bank license in 2020 but the earlier approval expired in 2023.
Ripple and Circle have also applied for national trust bank charters in the United States.

Paxos has filed for regulatory approval to become a national trust bank in the United States. The application is with the Office of the Comptroller of the Currency. This move positions Paxos alongside Ripple and Circle, which are also seeking national trust bank charters.

Paxos Moves to Convert NYDFS Charter

Paxos currently operates under a New York Department of Financial Services trust charter. The company aims to convert this into a national trust bank charter. This change would allow Paxos to manage and hold customer assets directly.

The new license would also permit Paxos to accept cash deposits and offer loans under federal regulation. Chief Executive Officer Charles Cascarilla stated,

“By applying for a national trust bank charter, we are continuing to offer the safest infrastructure.”

Paxos became the first blockchain firm to secure a limited trust charter from NYDFS in 2015.

The company initially filed for a national bank license in 2020 and received conditional approval in 2021. However, the earlier application expired in 2023 after delays. Cascarilla emphasized the company’s belief in blockchain as “a force for financial freedom.”

Ripple and Circle Follow Similar Paths

Ripple has also filed for a national trust bank charter with the OCC. The company issues the XRP cryptocurrency and recently announced plans for a Ripple USD stablecoin. Ripple’s banking license would expand its regulated financial services in the United States.

Similarly, Circle, the issuer of the USDC stablecoin, has submitted its application for a national trust bank charter. Circle’s approval would allow it to operate under a uniform federal regulatory framework. Both companies aim to enhance their credibility with institutional partners.

The competition underscores the increasing importance of regulated banking structures in the digital asset sector. These moves show a trend of stablecoin issuers seeking more substantial regulatory alignment. The OCC remains the key authority in reviewing and approving such applications.

Regulatory Landscape Expands Globally

Paxos has already secured licenses from regulators in Europe, Asia, and the Middle East. These include the Finnish Financial Supervisory Authority and the Monetary Authority of Singapore. The Abu Dhabi Global Market’s Financial Services Regulatory Authority also oversees certain Paxos operations.

Cascarilla noted that OCC oversight would build on Paxos’ commitment to safety and transparency. This global regulatory approach sets Paxos apart in the stablecoin industry. The strategy also supports the company’s expansion into new financial markets.

At present, Anchorage Digital remains the only U.S.-based digital asset platform with a national trust bank charter. As the race for federal licenses accelerates, Paxos aims to join this group. Ripple and Circle continue to advance their applications in parallel.

The post Paxos Renews High-Stakes Bid for National Trust Bank Status in U.S. appeared first on Blockonomi.

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Filed under: Bitcoin - @ August 11, 2025 7:28 pm