Paxos, a prominent stablecoin issuer, has submitted an application for a national bank trust charter to the Office of the Comptroller of the Currency, marking a significant step towards federal regulatory supervision. This move is intended to upgrade its existing New York Department of Financial Services license to a federal charter, thereby placing the company under federal oversight.
Paxos is known for issuing the PayPal-backed PYUSD stablecoin and is a founding member of the consortium responsible for the USDG token. The company's CEO, Charles Cascarilla, emphasized that obtaining OCC oversight will further reinforce Paxos' commitment to upholding the highest standards of safety and transparency. This development follows similar applications from competitors Circle and Ripple, as the stablecoin market experiences rapid growth and increasing competition. Notably, Paxos had previously received conditional approval for a national bank trust charter in 2021, but the application expired in 2023 before full approval could be granted.