Paxos Trust, the company behind the PYUSD stablecoin, is once again seeking a federal trust bank charter in the U.S. This move aligns with increasing integration of digital assets in the country's financial system.
Application for Trust Charter
Paxos confirmed that it has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. If approved, the company will convert its current limited-purpose trust license from the New York Department of Financial Services to a federal charter.
Competition in the Stablecoin Sector
The Paxos application comes amidst heightened competition in the stablecoin sector. Last month, rivals Circle and Ripple also filed national trust bank applications following the recent passage of a landmark U.S. stablecoin law.
Recent Events and Implications
Last week, Paxos agreed to pay $48.5 million to settle NYDFS allegations of inadequate monitoring of illegal activity tied to Binance. This settlement followed the admission of Binance’s former CEO Changpeng Zhao regarding violations in U.S. anti-money laundering laws.
Paxos continues its efforts to enhance its presence in the U.S. financial system, pursuing federal regulation which may strengthen its position in the stablecoin market.
