Paxos Seeks National Trust Bank Charter to Expand Stablecoin and Tokenization Services

Paxos, a leading regulated stablecoin issuer and tokenization platform, has filed an application with the Office of the Comptroller of the Currency (OCC) to convert its New York state trust charter into a national trust bank license. The move WOULD enable the company to hold and manage customer assets, accept cash deposits, and offer loans under federal oversight.

CEO Charles Cascarilla emphasized Paxos' decade-long commitment to regulatory compliance, positioning the national charter as a step toward offering "the safest, most trusted infrastructure available" for enterprises and consumers. The firm currently issues PayPal's PYUSD and Pax Dollar (USDP) stablecoins.

This development places Paxos alongside crypto firms like Circle and Ripple in pursuing banking licenses, reflecting broader industry efforts to bridge digital assets with traditional financial frameworks. A national charter could significantly expand Paxos' operational flexibility amid growing institutional interest in blockchain-based financial services.