Stablecoin issuer firm Paxos has applied for a national bank trust charter with the Office of the Comptroller of the Currency (OCC), making it the latest U.S. stablecoin company to seek federal regulatory oversight.
According to a Monday press release, Paxos aims to convert its New York Department of Financial Services (NYDFS) trust charter into a national one, a move that would put the firm under federal supervision.
Paxos issues the PYUSD stablecoin for payments firm PayPal, and it’s also a founding member of the consortium behind the Global Dollar (USDG) token.
“[The] OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency,” Charles Cascarilla, CEO and co-founder of Paxos, said in a statement.
Paxos’ move follows similar applications by rival issuers as competition is heating up in the fast-growing stablecoin market. Circle (CRCL), the company behind the $65 billion USDC (USDC) token, and Ripple, issuer of RLUSD, applied for national bank trust charters last month. The U.S. Congress also enacted rules for stablecoins and issuers with President Donald Trump signing the GENIUS Act into law last month, improving regulatory clarity for the sector.
The company obtained conditional approval for a national bank trust charter in 2021, but their application expired in 2023 before Paxos was able to receive full approval from the OCC.
Read more: NYDFS Fines Stablecoin Issuer Paxos $26.5M for Compliance Failures Tied to Binance’s BUSD