The Stablecoin Paxos issuing firm requested a national bank trust charter from the office of the Currency Controller (OC)This makes it the last American company of Stablecoin to seek federal regulatory monitoring.
According to a press release on Monday, Paxos aims to convert its New York Financial Services Department (Nydfs) Trust the national charter, a decision that would put the company under federal supervision.
Paxos emits the Pyusd Stablecoin for the Paypal payment company, and it is also a founding member of the consortium behind the world dollar (USDG) token.
“”[The] The OCC Outight will help to rely on our historic commitment to maintain the highest standards of safety and transparency, “said Charles Cascarilla, CEO and co-founder of Paxos, in a press release.
The move of Paxos follows similar applications by rival issuers while competition is warmed in the rapidly growing stable market. Circle (CRCL)the company behind the $ 65 billion USDC (USDC) Token, and Ripple, issuer of Rlusd, asked for charters of the National Bank Trust last month. The US Congress also promulgated rules for stablecoins and issuers with President Donald Trump signing the law on engineering last month, improving the regulatory clarity of the sector.
The company obtained conditional approval from a national bank trust charter in 2021, but their request expired in 2023 before Paxos was able to receive complete approval from the OCC.
Read more: fine nydfs stablecoin isuer paxos $ 26.
