Stablecoin issuer Paxos follows Circle and Ripple in seeking national operating rights to replace its New York license.
Paxos, the stablecoin issuer and tokenization solution provider, has applied for a national bank charter with the U.S. Office of the Comptroller of the Currency (OCC), following major competitors in the industry in a trend to upgrade operating legal frameworks. This move comes amidst the establishment of a clear federal legal framework for stablecoins in the U.S. through the GENIUS Act.
If approved by the OCC, the new license will upgrade the existing license issued by the New York Department of Financial Services, allowing Paxos to operate nationwide instead of being limited to state-level operations. A spokesperson for Paxos emphasized that "the OCC is the leading global banking regulator" and that being licensed at the national level will "open up growth opportunities and optimization."
This move reflects a broader trend in the industry as major stablecoin companies like Circle and Ripple have also applied for national bank charters. These applications are driven by the GENIUS Act – a new federal law on stablecoins that creates a clear legal framework, along with the OCC's announcement in May 2025 allowing national banks to manage, trade, and custody cryptocurrency assets.
Addressing recent legal challenges
The license application comes just a week after Paxos settled allegations related to the issuance of Binance USD – a stablecoin that was used unlawfully by U.S. customers. The company paid a $26.5 million fine to New York State to settle the matter, highlighting the importance of regulatory compliance in the digital asset space.
Paxos emphasizes that being brought under federal regulation will enable it to provide more robust and efficient solutions for customers, especially in the context of an existing federal legal framework for stablecoins. The company stated that it has enhanced its operational capabilities to serve the largest global financial institutions.
Currently, Paxos is headquartered in New York and issues PayPal USD – a stablecoin in collaboration with PayPal, along with PAX Gold – a gold token. Additionally, the company provides tokenization, custody, and asset trading services for major clients such as Mastercard, Interactive Brokers, and MercadoLibre.