Paxos seeks federal license as a trust bank (#Paxos #PYUSD #Stablecoins #OCC)

Paxos submitted its application today to convert its current New York trust into a national trust bank under the OCC. If approved, it would operate under federal supervision, being able to custody and settle assets at a national level (e.g., PayPal's PYUSD) with greater standardization, although without taking insured deposits or granting loans like a traditional bank. The move revives its attempt from 2021–2023 and adds to the trend of issuers like Circle and Ripple seeking national charters, following new regulatory advancements in the U.S. regarding stablecoins. Context: the firm closed a deal last week for USD 48.5 M with the New York regulator to strengthen compliance controls.