Paxos Seeks National Trust Charter from OCC in Bid for Federal Legitimacy

Paxos Trust Company, the stablecoin issuer behind PayPal's crypto ventures, has submitted an application for a national trust charter to the Office of the Comptroller of the Currency (OCC). The move signals a strategic push for broader regulatory acceptance and operational freedom beyond its current New York-limited license.

Approval WOULD shift Paxos from state-level oversight under NYDFS to direct federal supervision, enabling nationwide operations without piecemeal state approvals. The firm aims to leverage this upgrade for enhanced credibility and potential access to federal payment networks—a competitive edge against rivals like Circle and Ripple.

The OCC's recent relaxation of crypto restrictions for banks adds momentum to Paxos' play. A federal charter could redefine the regulatory battleground for stablecoin issuers, with implications for institutional adoption of blockchain-based financial infrastructure.