Paxos Trust Co. has announced plans to apply to the U.S. Office of the Comptroller of the Currency, which could elevate its status and open new opportunities in the financial sector.
Paxos's Renewed Efforts for License
Paxos Trust Company is preparing to apply to the Office of the Comptroller of the Currency (OCC), which will place the company under federal oversight. Although this license would not allow Paxos to take deposits or issue loans, it would grant the authority to hold customer assets and speed up settlements. Industry insiders suggest that this level of credibility may help the company strengthen relationships with banks and payment providers.
Impact of New Legislation on Stablecoins
Stablecoin regulation in the U.S. has seen significant shifts in recent months. A law signed by President Donald Trump in July created the first nationwide rules for these dollar-pegged cryptocurrencies, paving the way for their use in commerce and transactions. Supporters believe the legislation could push stablecoins from a niche tool to a mainstream financial instrument.
Future Prospects for Paxos in the Financial Sector
Paxos previously sought the OCC charter in 2020 and received conditional approval the following year, but the process stalled and expired in 2023. If successful this time, it could join the ranks of few crypto firms with national trust bank status. This renewed effort comes amid a wave of similar applications from competitors, including Ripple and Circle. Paxos also provides blockchain infrastructure and settlement technology for institutions.
Paxos is banking on the legitimacy of a federal charter to open new doors in the financial sector, aiming for closer integration with traditional banks and payment providers.
