Paxos Trust Company, a key player in blockchain infrastructure and regulated stablecoin issuance, has applied for a U.S. national trust bank charter with the Office of the Comptroller of the Currency (OCC). The move would transition Paxos from its current New York State trust charter to direct federal oversight—an upgrade that could solidify its position in the crypto ecosystem.
Known for powering stablecoins such as PayPal USD (PYUSD) and Pax Dollar (USDP), Paxos aims to strengthen investor confidence by operating under national standards while maintaining its 1:1 asset-backed redemption model. This ensures stablecoin holders can redeem tokens for equivalent U.S. dollars at any time—a key requirement for maintaining credibility in the volatile crypto market.
CEO Charles Cascarilla described the step as part of Paxos’s decade-long mission to combine blockchain innovation with regulatory trust:
“For over a decade, Paxos has set the bar for regulatory oversight and compliance. By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available. OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency.”
The charter could give Paxos a stronger foothold in serving institutional crypto players, exchanges, and DeFi platforms, while setting a precedent for other blockchain companies to seek federal banking recognition. With over $500 million raised from backers including PayPal Ventures, Paxos is signaling that the future of digital assets will be built on both decentralization and deep regulatory alignment.
If approved, the move could accelerate mainstream adoption of crypto payments, tokenized assets, and stablecoins—positioning Paxos as a key bridge between the traditional banking system and the blockchain-powered economy.
