Paxos seeks approval to become a fully regulated crypto bank

Creator of Stablecoin and crypto service provider Paxos deposit a request to open a national bank on Wednesday. If approved, pioneer Paxos General Trust will be headquartered in New York City, licensed to hold cryptocurrencies and perform the duties of an ordinary trusted bank.

From a blog Publish On the Paxos website, the granting of a National Trusted Bank Charter from the US government would expand both the range of services offered by the company and the geographic area to which it can offer services:

“Our mission is to modernize the infrastructure of financial markets and enable the movement of any asset, at any time, in a reliable manner. A National Trust Bank Charter would help us achieve our goal by enabling us to serve our clients across the country in the most efficient manner.

If approved, the request would mark the first time that a digital asset manager has been regulated at both state and federal levels in the United States. Financial Services (NYDFS). In 2015, the company – then known as ItBit – become the first “virtual currency” service provider to receive a charter from NYDFS.

In October, Paxos partnered with PayPal to provide trading and custody services related to cryptocurrencies supported by the payments giant. “PayPal’s selection of Paxos reflects New York’s status as a gold standard for cryptocurrency regulation,” noted Paxos CEO Charles Cascarilla in a press release about the partnership announcement.

In addition to providing services for PayPal, Paxos continues to operate the ItBit exchange, offer crypto brokerage services, and maintain PAX, BUSD, and PAXG stablecoins. The company was founded in 2012, has offices in New York, London and Singapore, and employs around 150 people.

The custodian of digital assets, Anchorage, also requested a federal charter last month.