Payoneer applies for a US bank charter…pushes ahead with stablecoin issuance

Global fintech company Payoneer has joined the race to obtain a US bank charter.

According to Cointelegraph on the 24th (local time), Payoneer applied to the US Office of the Comptroller of the Currency (OCC) for a national trust bank charter to establish “PAYO Digital Bank.” If approved, it would be able to issue its own stablecoin and offer crypto-asset-related services.

Payoneer recently partnered with stablecoin infrastructure firm Bridge to add stablecoin functionality to its platform. The company plans to issue a stablecoin, “PAYO-USD,” that complies with the GENIUS Act, use it as the default held currency in users’ wallets, and also provide stablecoin sending and receiving features. Hereafter, it will be referred to in the text as the GENIUS Act.

With OCC approval, it would also be able to manage PAYO-USD reserves, provide custody services, and offer conversion services between stablecoins and local currencies. Payoneer CEO John Caplan said, “Stablecoins will play an important role in the future of global trade.”

In the US, applications for bank charters by crypto-asset and fintech firms have been coming one after another. On the 23rd, the OCC granted conditional approval to Crypto.com. Earlier, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos had also received charters.

World Liberty Financial, run by the Trump family, also applied in January to expand its stablecoin USD1, while Coinbase and Laser Digital are likewise awaiting outcomes after filing their respective applications.

Payoneer has around 2 million customers, most of them small and medium-sized businesses. The company stressed that stablecoins can help expand dollar-based global trade and increase dollar usage in non-dollar payment corridors.