Paxos Applies for OCC National Trust Bank License to Strengthen U.S. Stablecoin Role

New York — Blockchain infrastructure firm and stablecoin issuer Paxos Trust Company has applied for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC), a move that could elevate its regulatory standing and competitive edge in the fast-evolving digital asset market. If approved, Paxos would gain federal oversight, nationwide operational reach, and the ability to offer custody and settlement services under a uniform regulatory framework.

Paxos Plans Federal Charter Transition from New York Trust License

Paxos currently operates under a limited-purpose trust charter issued by the New York Department of Financial Services (NYDFS). While this license has allowed the firm to issue regulated stablecoins such as PayPal USD (PYUSD) and Pax Dollar (USDP), it limits operations to New York’s jurisdiction unless the company secures additional state approvals.

A national trust bank charter would remove these geographical restrictions, allowing Paxos to serve clients in all 50 states without navigating fragmented state-level licensing. It would also bring the company under direct OCC supervision, a status viewed by industry analysts as a strong signal of institutional credibility. Such oversight could help Paxos deepen partnerships with banks, payment processors, and fintechs wary of dealing with crypto firms lacking federal recognition.

A Second Bid After a Lapsed Approval

This marks Paxos’ second attempt at securing an OCC charter. The firm first applied in 2020, receiving preliminary conditional approval in 2021 before the authorization lapsed in 2023. According to sources familiar with the matter, the new application follows months of consultations with federal regulators and is timed to coincide with the Stablecoin Regulation Act signed into law in July 2025 by President Donald Trump.

The legislation creates a formal licensing regime for stablecoin issuers, setting capital, reserve, and disclosure requirements. Proponents say it will bring much-needed clarity to a sector long caught between state and federal oversight. Critics argue the rules could entrench larger players while squeezing out smaller innovators.

OCC to Examine Paxos’ Compliance Track Record

While the OCC charter could open new business opportunities, the approval process will likely involve intense scrutiny of Paxos’ compliance history. Earlier this year, the NYDFS directed the company to stop issuing Binance USD (BUSD) following allegations of inadequate monitoring for illicit transactions. In August 2025, Paxos agreed to a $48.5 million settlement with New York authorities over related allegations, though it neither admitted nor denied wrongdoing.

The company ended its partnership with Binance shortly after the NYDFS order and has since focused on fully regulated projects, including PYUSD in partnership with PayPal — now holding a market capitalization of over $1 billion, according to CoinGecko.

Multiple Crypto Firms Compete for OCC Trust Bank Licenses

Paxos is not alone in pursuing a federal trust charter. Stablecoin issuer Circle and blockchain payments firm Ripple both filed similar applications in recent weeks, reflecting a broader industry push to secure bank-grade regulatory credentials. The only crypto firm to hold an OCC trust charter today is Anchorage Digital, which received approval in 2021.

Market observers say that in the post-Stablecoin Regulation Act era, a national trust bank charter could become a baseline requirement for stablecoin issuers seeking large-scale financial partnerships — turning OCC approval into a competitive advantage rather than just a regulatory milestone.

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