#Bitlayer #BTCOvertakesAmazon $BTC $ETH $SOL
Exclusive - Paxos has joined the wave of cryptocurrency companies that have applied for American trust bank licenses.
Participates
Paxos Trust Company, the cryptocurrency company behind the PayPal stablecoin, said it is applying to establish a national trust bank in the United States, joining a group of digital asset companies seeking to gain a larger foothold in the traditional financial system.
If licensed by the U.S. Office of the Comptroller of the Currency, Paxos would be enabled to manage and hold assets on behalf of customers, settling payments faster. Unlike traditional banks, the license would not allow Paxos to accept cash deposits or make loans.
If approved, Paxos will convert its limited-purpose trust charter with the New York Department of Financial Services to a federal charter under the supervision of the Office of the Comptroller of the Currency.
Announcement
The charter will not change Paxos's business model, but it will provide "the highest level of regulatory oversight... which carries greater weight in the United States and around the world," according to a source familiar with the matter.
Paxos previously applied for a national trust bank charter in 2020, and the company received conditional preliminary approval from the Office of the Comptroller of the Currency in 2021. However, its application stalled and ultimately ended in 2023.
The cryptocurrency platform Anchorage Digital is currently the only digital asset company that holds a national trust bank charter.
The stablecoin company Circle, alongside the cryptocurrency company Ripple, applied for a national trust bank charter last month.
Paxos provides companies with infrastructure and capabilities for blockchain technology and stablecoins, issuing several of its own stablecoins. Paxos issues the PayPal stablecoin PYUSD, which has a market capitalization exceeding one billion US dollars.
Stablecoins, a type of cryptocurrency designed to maintain a stable value, typically 1:1, are commonly used by cryptocurrency traders to transfer funds between tokens. Their use has rapidly increased in recent years, and proponents say they can be used to send payments instantly.
