Global: Paxos Seeks National Trust Charter to Strengthen Federal Oversight

Blockchain infrastructure provider Paxos has submitted an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter, bringing the company under the supervision of the Office of the Comptroller of the Currency (OCC).

According to Paxos, the shift will not alter its business model but will place operations under federal oversight, reinforcing its commitment to “the highest global standards for safety and transparency.”

Paxos, known for powering PayPal’s PYUSD stablecoin, initially sought a national trust bank charter in 2020, receiving preliminary approval from the OCC before the application lapsed. The renewed application comes amid a more favourable U.S. regulatory climate for crypto firms and stablecoin issuers, with Circle and Ripple also pursuing charters in recent months.

“Our goal is to provide enterprise partners and consumers with the safest, most trusted infrastructure available,” said Paxos CEO Charles Cascarilla.

The move follows a $48.5 million settlement with the NYDFS over anti-money laundering compliance failures related to its dealings with Binance.