PayPal’s Stablecoin Issuer Seeks National Trust Bank Status
The post PayPal’s Stablecoin Issuer Seeks National Trust Bank Status appeared on BitcoinEthereumNews.com. Fintech The company powering PayPal’s PYUSD stablecoin is once again trying to step deeper into the U.S. financial system – this time with a renewed push for a national trust bank charter. Paxos Trust Company says it’s preparing to apply to the Office of the Comptroller of the Currency (OCC), a move that would place it under the kind of federal oversight more often associated with traditional financial institutions. While such a license wouldn’t allow Paxos to take deposits or issue loans, it would grant the authority to hold customer assets, process settlements faster, and operate under a framework recognized by regulators around the world. Industry insiders say this level of credibility could help the firm strengthen relationships with banks, asset managers, and payment providers seeking to bridge into digital assets. Why the Timing Matters Stablecoin regulation in the U.S. has shifted rapidly in recent months. A law signed by President Donald Trump in July created the first nationwide rules for these dollar-pegged cryptocurrencies, setting the stage for mainstream adoption in commerce and cross-border payments. Supporters of the legislation believe it could push stablecoins from a niche crypto trading tool into an everyday financial instrument. From Past Hurdles to Fresh Ambitions Paxos previously sought the same OCC charter in 2020, winning conditional approval the following year before the process stalled and expired in 2023. If successful this time, it would join Anchorage Digital as one of the few crypto firms with national trust bank status. The renewed effort comes amid a wave of similar applications from competitors, including Ripple and Circle, as digital asset companies aim to integrate more closely with the U.S. banking system. Core Business and Regulatory Legacy Beyond PayPal’s $1 billion-plus PYUSD stablecoin, Paxos provides blockchain infrastructure, settlement technology, and token issuance services for institutions. The firm…
The post PayPal’s Stablecoin Issuer Seeks National Trust Bank Status appeared on BitcoinEthereumNews.com.
Fintech The company powering PayPal’s PYUSD stablecoin is once again trying to step deeper into the U.S. financial system – this time with a renewed push for a national trust bank charter. Paxos Trust Company says it’s preparing to apply to the Office of the Comptroller of the Currency (OCC), a move that would place it under the kind of federal oversight more often associated with traditional financial institutions. While such a license wouldn’t allow Paxos to take deposits or issue loans, it would grant the authority to hold customer assets, process settlements faster, and operate under a framework recognized by regulators around the world. Industry insiders say this level of credibility could help the firm strengthen relationships with banks, asset managers, and payment providers seeking to bridge into digital assets. Why the Timing Matters Stablecoin regulation in the U.S. has shifted rapidly in recent months. A law signed by President Donald Trump in July created the first nationwide rules for these dollar-pegged cryptocurrencies, setting the stage for mainstream adoption in commerce and cross-border payments. Supporters of the legislation believe it could push stablecoins from a niche crypto trading tool into an everyday financial instrument. From Past Hurdles to Fresh Ambitions Paxos previously sought the same OCC charter in 2020, winning conditional approval the following year before the process stalled and expired in 2023. If successful this time, it would join Anchorage Digital as one of the few crypto firms with national trust bank status. The renewed effort comes amid a wave of similar applications from competitors, including Ripple and Circle, as digital asset companies aim to integrate more closely with the U.S. banking system. Core Business and Regulatory Legacy Beyond PayPal’s $1 billion-plus PYUSD stablecoin, Paxos provides blockchain infrastructure, settlement technology, and token issuance services for institutions. The firm…
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