Paxos joins Ripple and Circle in pursuit of US trust bank licenses

Home / News / Paxos joins Ripple and Circle in pursuit of US trust bank licenses

Main meals

Paxos applied for a National Charter at the Trust Bank, after similar moves by Ripple and Circle.
If approved, Paxos will get an increase in organizational supervision and larger operational capabilities to manage digital assets.

Paxos Trust Company, a New York recovered company, has provided a Blockchain infrastructure for symbolic assets and Stablecoins, requesting a currency observer office (OCC) for the National Trust Charter in the United States.

With this step, the company joins other original companies, including ripple and circleIn the search for banking licenses that will help them gain federal organizational legitimacy and consolidate the organizational basis of their STABLECOIN companies.

Likewise, the charter will provide “the highest level of organizational supervision”, which carries a greater impact in the United States and the world, according to a source of the Paxos move to Reuters.

If approved, the OCC Charter will allow Paxos to carry customer assets and deal with payments more quickly. Paxos will also turn from the current New York State Trust to Federral Federal.

Paxos first applied to obtain the National Trust Bank charter in December 2020 and receive a preliminary conditional approval from OCC in April 2021. The charter will allow providing services such as custody, credit duties and Stablecoin reserve management.

However, the request faced criticism to lack the bank’s traditional confidence activities, prompting calls to further organizational scrutiny. In early 2023, Paxos faced an investigation by the Ministry of Financial Services for the state of New York (DFS).

Ultimately, the request ended by March 31, 2023, leaving Anchorage Digital as the only digital asset company that has a National Charter at Trust Bank.

This announcement is followed recently Settlement with DFS On compliance violations to combat money laundering and errors in due care related to their past work with Binance. The settlement includes a civil fine of $ 26.5 million and $ 22 million for improving compliance systems over the next three years.