Summary
- It was reported that Paxos could expand its business nationwide in the U.S. by reapplying for a banking license.
- Upon OCC approval, Paxos would be able to provide asset custody and payment services nationwide under federal supervision.
- The recent passage of stablecoin regulations, along with other issuers’ banking license applications, signals a noteworthy shift in the market.
Paxos, the issuer of PayPal USD (PYUSD), has submitted an application to obtain a U.S. banking license.
On the 11th (local time), crypto-specialized media outlet Cointelegraph reported that Paxos had applied to the Office of the Comptroller of the Currency (OCC) for a national trust charter to acquire a license for offering financial services throughout the United States.
If the OCC approves the application, Paxos will not be able to accept cash deposits or make loans, but will be able to provide nationwide asset custody and payment services under federal oversight. This is expected to expand its operations, previously limited to the New York area, across the United States.
Charles Cascarilla, CEO of Paxos, stated in a press release, “OCC supervision will further strengthen our historic commitment to safety and transparency.”
Paxos first applied for OCC authorization in December 2020 and received conditional approval in April 2021, but the approval expired in March 2023 after it failed to meet the opening requirements for a bank within 18 months. Paxos has since continued to operate under a New York state license.
The media explained that Paxos’s renewed attempt is in line with the recent passage of the first U.S. stablecoin regulation, the GENIUS Act, and a wave of banking license applications from other stablecoin issuers such as Ripple and Circle.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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