The company powering PayPal’s PYUSD stablecoin is once again trying to step deeper into the U.S. financial system – this time with a renewed push for a national trust bank charter.
Paxos Trust Company says it’s preparing to apply to the Office of the Comptroller of the Currency (OCC), a move that would place it under the kind of federal oversight more often associated with traditional financial institutions.
While such a license wouldn’t allow Paxos to take deposits or issue loans, it would grant the authority to hold customer assets, process settlements faster, and operate under a framework recognized by regulators around the world. Industry insiders say this level of credibility could help the firm strengthen relationships with banks, asset managers, and payment providers seeking to bridge into digital assets.
Why the Timing Matters
Stablecoin regulation in the U.S. has shifted rapidly in recent months. A law signed by President Donald Trump in July created the first nationwide rules for these dollar-pegged cryptocurrencies, setting the stage for mainstream adoption in commerce and cross-border payments. Supporters of the legislation believe it could push stablecoins from a niche crypto trading tool into an everyday financial instrument.
From Past Hurdles to Fresh Ambitions
Paxos previously sought the same OCC charter in 2020, winning conditional approval the following year before the process stalled and expired in 2023. If successful this time, it would join Anchorage Digital as one of the few crypto firms with national trust bank status. The renewed effort comes amid a wave of similar applications from competitors, including Ripple and Circle, as digital asset companies aim to integrate more closely with the U.S. banking system.
Core Business and Regulatory Legacy
Beyond PayPal’s $1 billion-plus PYUSD stablecoin, Paxos provides blockchain infrastructure, settlement technology, and token issuance services for institutions. The firm also once partnered with Binance to issue Binance USD, before New York regulators ordered a halt in early 2023. Just last week, Paxos agreed to pay $48.5 million to resolve claims it failed to adequately monitor Binance-related activity.
Despite regulatory turbulence, Paxos is betting that the legitimacy of a federal charter will open doors – not just in Washington, but with major financial players worldwide – as stablecoins edge closer to becoming part of the global payments backbone.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Reporter at Coindoo
Source: https://coindoo.com/paypals-stablecoin-issuer-seeks-national-trust-bank-status/