Paxos is seeking a national trust bank charter from the U.S. Office of the Comptroller of the Currency (OCC), just days after reaching a $48.5 million settlement with New York regulators over compliance issues related to its work with Binance. The blockchain firm wants to convert its existing New York limited-purpose trust into a federal charter.
If approved, the OCC charter would enable Paxos to streamline asset management and payment settlement services, though it would not permit traditional banking functions like accepting deposits or issuing loans.
This marks the company’s second attempt at securing federal approval. Paxos previously obtained preliminary OCC clearance in 2021, but the authorization expired in 2023 without being finalized.
Paxos bets on regulatory compliance for its comeback
Paxos’s move reflects a growing trend among cryptocurrency companies pursuing federal banking supervision.
Stablecoin issuer Circle applied for an OCC national trust bank license in late June following its IPO, while Ripple disclosed its application last month.
Currently, Anchorage Digital stands as the sole digital-asset firm operating with an active national trust bank charter.
Policy momentum is also part of the backdrop. In July, President Donald Trump signed a federal stablecoin law that creates a regulatory regime for dollar-backed tokens, a step analysts say could accelerate mainstream payments use and make federal charters more attractive to issuers.
Paxos runs blockchain infrastructure and issues stablecoins like PayPal’s PYUSD. It stopped minting Binance’s BUSD in early 2023 after New York regulators stepped in.
A recent settlement over compliance lapses with its former partner includes a $26.5 million fine and a $22 million pledge to improve controls.
Taken together, the fresh OCC application, a costly New York settlement, and clearer federal rules position Paxos to seek broader national operations—while underscoring that crypto firms pursuing bank-style privileges will face tougher, ongoing supervision.
