Paxos, which issues PayPal’s PYUSD stablecoin, has applied to convert its New York Department of Financial Services trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency.
Paxos said in a press release that the move, if approved, would place it under federal oversight and “underscores its consistent commitment to maintain the highest regulatory standards of any blockchain infrastructure and tokenization platform globally.”
Paxos has operated under oversight from the NYDFS since 2015, when it became the first blockchain and tokenization company to be granted a limited purpose trust charter. It issued the first regulated stablecoin three years later.
“For over a decade, Paxos has set the bar for regulatory oversight and compliance,” Charles Cascarilla, the company’s co-founder and CEO, said in the release. “By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available. “