The news: Paxos Trust Company, the firm behind PayPal's stablecoin PYUSD, is reapplying for a national trust bank charter with the US Office of the Comptroller of the Currency (OCC), per Reuters.
This is a renewed attempt after their initial application expired in 2023. Other crypto firms like Circle and Ripple have recently applied for similar licenses.
Why it matters: Crypto companies are trying to integrate into the traditional financial system. A national trust bank charter would allow Paxos to operate under federal oversight rather than the patchwork of state-by-state regulations.
While it wouldn't let Paxos take deposits or make loans like a traditional bank, it would give the firm a greater level of credibility and regulatory certainty. This renewed push by Paxos, along with applications from other major players, suggests that the industry sees a more favorable regulatory environment, particularly after President Donald Trump signed the GENIUS Act into law.
The charter would also allow Paxos to better serve its institutional clients and potentially pave the way for broader adoption of its stablecoins, like PayPal's PYUSD, in mainstream finance.
Our first take: This is a calculated move by Paxos that reflects an evolving crypto market. While its previous attempt at this license stalled, the current environment is dramatically different.
Securing this charter would be a significant competitive advantage for Paxos, giving the firm a higher level of trust and legitimacy, which is crucial for attracting institutional partners and mainstream companies that are still wary of the crypto space.
This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.
Check out other EMARKETER content related to this story: