Paxos has filed a new application with the U.S. Office
of the Comptroller of the Currency to secure a national trust charter,
seeking to replace its New York state license with federal oversight.
The move comes shortly after Circle and Ripple
submitted similar filings, marking an intensifying race among stablecoin
issuers for national regulatory status.
Today, we announced that we have filed an application to convert our NYDFS trust charter into a national trust charter under the Office of the Comptroller of the Currency.https://t.co/gVMdwteuLI
— Paxos (@Paxos) August 11, 2025
From State to Federal Supervision
In a Monday statement, Paxos said it plans to convert
its New York Department of Financial Services trust charter into a national
one, placing the firm under OCC authority. CEO Charles Cascarilla said the
change would strengthen “safety and transparency” in its operations.
Related: Circle Moves to Become a US National Trust Bank after Bumper IPO
The company issues PYUSD in partnership with PayPal
and is part of the consortium behind the Global Dollar (USDG) token. “By applying for a national trust bank charter, we are
continuing to offer enterprise partners and consumers the safest, most trusted
infrastructure available,” commented Charles Cascarilla, CEO and
co-founder of Paxos.
Regulatory Momentum Builds
Circle, which issues the $65 billion USDC, and Ripple,
issuer of RLUSD, applied for national bank trust charters last month. Their
filings came after President Donald Trump signed the GENIUS Act into law,
introducing new federal rules for stablecoin issuers.
Paxos previously gained conditional approval for a
national trust charter in 2021, but the application expired in 2023 before
receiving full authorization.
This article was written by Jared Kirui at www.financemagnates.com.
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