Paxos Receives OCC Approval for National Trust Charter

Paxos has reached a significant milestone by securing approval from the U.S. Office of the Comptroller of the Currency (OCC) to transition from a New York state trust charter to a national trust charter. This development establishes Paxos as a federally regulated blockchain infrastructure provider, consolidating its U.S.-based operations under a single regulatory framework.

Under the oversight of the OCC, Paxos will now manage its stablecoin issuance, brokerage, custody, and settlement services within a unified federal structure. The company highlighted that the change will allow businesses to operate digital asset products more seamlessly across all 50 U.S. states, benefiting from enhanced regulatory clarity.

Charles Cascarilla, Paxos' chief executive and co-founder, described the approval as a transformative step for the company. "This approval marks a new phase for the company after a decade as a regulated entity under the New York Department of Financial Services", he said. Cascarilla also emphasized the advantages of federal oversight, stating that it will enable clients to "innovate, incubate and grow digital asset businesses safely and seamlessly within the U.S."

A Unified Approach to Digital Asset Regulation

Paxos has indicated that the OCC charter will allow the company to provide an enterprise-grade platform for stablecoin issuance and settlement, while remaining compliant with evolving federal regulations, including the upcoming GENIUS rules. This move is expected to simplify operations for institutional partners and ensure continuity of services as regulatory landscapes shift.

The company believes the new charter further strengthens its position in the regulated stablecoin sector. PayPal USD, issued by Paxos, is positioned to become the largest U.S. dollar-backed stablecoin offered by a federally regulated entity. Additionally, Paxos Gold (PAXG) stands out as the only gold-backed digital asset regulated under federal oversight.

sbb-itb-e766981

Future-Proofing Blockchain Services

Paxos has framed this transition as part of its strategy to future-proof its platform as the adoption of digital assets continues to grow. By reducing operational complexity, Paxos aims to create a more efficient and regulatory-compliant environment for its enterprise clients.

As the company adapts to the upcoming GENIUS regulations, Paxos reassures customers of uninterrupted services throughout the transition. The approval by the OCC underscores Paxos' commitment to maintaining a leadership role in the regulated blockchain ecosystem.

Read the source