Paxos Seeks National Trust Bank Charter in U.S. to Expand Stablecoin Operations

Paxos Trust Company, the New York-based stablecoin issuer, has filed an application to establish a national trust bank under the U.S. Office of the Comptroller of the Currency. The move WOULD enable the firm to custody digital assets and expedite payment settlements—though unlike traditional banks, it would not accept deposits or issue loans.

The application marks Paxos' second attempt at federal recognition after a 2021 conditional approval expired last year. If successful, Paxos would join Anchorage Digital as the only crypto-native firms with national trust charters, outpacing rivals like Circle and Ripple who hold state-level approvals.

Market observers note the OCC's decision could set precedents for how regulators treat blockchain-based financial services. "This isn't just about Paxos—it's a litmus test for whether crypto infrastructure can coexist with traditional banking," said a source familiar with the application.