TL;DR
- Paxos has applied to convert its New York trust charter into a national trust charter under federal oversight by the OCC.
- The new federal license will complement its existing international regulation in Europe, Singapore, and Abu Dhabi.
- The company maintains all its assets fully backed 1:1 by protected reserves and assures that the transition will not affect service continuity or user security.
Paxos announced it has submitted an application to convert its trust charter issued by the New York Department of Financial Services into a national trust charter regulated by the Office of the Comptroller of the Currency (OCC) in the United States. This change will shift the company’s regulation to the federal level and raise the regulatory standards it already follows in its operations.
Since 2015, Paxos has operated under the supervision of New York regulators and was an industry pioneer by obtaining the first trust charter for a blockchain company. In 2018, the firm launched the first regulated stablecoin on the market, setting a precedent in regulatory compliance within the sector. Transitioning to a national trust charter will allow it to operate under direct supervision of the OCC, complementing its existing oversight in Europe, Singapore, and Abu Dhabi.
Charles Cascarilla, Paxos’s CEO and co-founder, stated that the application aims to maintain the highest levels of security and transparency. The company ensures that all assets issued on its platform remain fully backed by protected reserves in US dollars, Treasury bonds, and cash equivalents. This guarantee assures users that they will always be able to redeem their assets at a one-to-one ratio.
Paxos Will Continue Providing Services Without Interruption
The company expects this transition will not disrupt service for its clients. With the national trust charter, Paxos will expand its regulatory framework, facilitating access to new customers and businesses worldwide under multinational supervision. The combination of these international regulations aims to offer a safer and more reliable environment for issuing and transferring digital assets.
Paxos explains that its goal is to modernize the financial system, making it more efficient and accessible by enabling the instant and secure movement of assets anywhere in the world. The application to the OCC demonstrates its intention to strengthen trust in blockchain technologies through federally recognized regulatory standards.
With this initiative, Paxos moves forward in consolidating its position as a trusted platform in blockchain infrastructure and tokenization, seeking to meet the growing demand for regulated solutions
