Today, the Office of the Comptroller of the Currency (OCC) announced that Paxos has received preliminary conditional approval of its application to establish a de novo national Trust Bank.
This makes Paxos the first crypto-native company to receive preliminary conditional approval for a de novo national Trust Bank charter. While other digital asset companies have received the greenlight to convert to a national trust bank, Paxos is the first to maintain its current regulatory structure (i.e. Paxos will retain our New York Department of Financial Services state Trust charter) and also seek a new federal charter.
This is an exciting development as Paxos further distinguishes itself as the most trusted operator in the blockchain and digital assets industry.
When we initially applied for this charter, we outlined how an OCC Trust Bank charter would help us to serve customers across the country most efficiently. But we’re retaining our NYDFS-regulated Trust company and have no plans to change that. We see significant benefits in having both a nationally and state regulated bank. Our clients and potential partners are some of the most sophisticated financial and tech institutions in the world. They are accustomed to working with the best of the best.
With separate oversight and jurisdiction on both levels, Paxos implicitly demonstrates just how our operations meet higher standards than others in our field. Importantly, Paxos will provide its clients with product choices and clear solutions that fit their individual needs.
What’s next? Well, this news means that the OCC has reviewed our intentions for Paxos National Trust and indicated that our initial plans meet their standards. Now, Paxos will execute on those plans to create the National Trust Bank.
Paxos is on a mission to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. With this, we’re showing the market how we will remain the most trusted operator in this space. And we will relentlessly pursue initiatives that ensure we maintain this advantage.