TL:DR Breakdown:
- Paxos has become the latest crypto company to apply for a national banking license with the US OCC.
- If approved, the company can run its services across the country as a qualified custodian of digital assets.
More digital currency companies are joining the crypto bank train in the United States. In recent months, companies like Kraken, Avanti, and cryptocurrency custodian, Anchorage filed with the country’s regulator for a banking charter. Following the information on Wednesday, Paxos has become the latest company filing for a national Trust bank charter with the US bank regulator, Office of the Comptroller of the Currency (OCC).
Paxos to uphold both a state and national banking license
According to the cryptocurrency custodian, the national banking license comes as an effort aimed at enabling them to realize their mission of improving the financial market infrastructure, while also allowing a method for streamlined transfer of assets. With the approval, the company will become the first-ever digital asset custodian with a state and national banking license in the United States.
“A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way,” the company added.
Paxos is headquartered in New York and regulated by the state’s Department of Financial Services (NYDFS). Recently, the company was awarded a conditional license that authorized its partnership with PayPal, a digital payment platform, to debut cryptocurrency services for its customers. Besides, Paxos issued several NYDFS-regulated cryptocurrencies, including, the stablecoin Paxos Standard, PAX Gold, BUSD, and other assets.
Crypto banks in the US
As recently as November 17, Cryptopolitan reported that Anchorage had filed for a national banking license with the US OCC. With the approval, the custodian of digital assets will be able to operate business across the country as a qualified custodian. Avanti Finacial and Kraken exchange previously bagged a state banking charter from Wyoming state regulators, making them the first and second entities pushing for such a license at the state level.
