With reference to the public document that was published on the 8th day of December, 2020, Paxos, a crypto firm that issues stablecoins has registered to be under the surveillance of the government as a Federal bank in the United States.
With this move, Paxos is set to establish the Paxos National Trust. The Company has registered with the office of the Comptroller of the Currency (OCC) and is also putting in the works to obtain a Federal Charter that will enable it to operate as a bank.
From the registration, the financial institution is set to function from New York city. As at press time, Paxos already offers services that include gold and cash custodial services, issuance of virtual assets, crypto services, clearing of financial instruments, trading of products and the likes.
A General Counsel, Dan Burstein notes:
“U.S. law is organized at both a state and federal level. The national charter was designed expressly to allow banks to conduct business across state lines more easily. This flexibility allows a young company like Paxos to focus resources on building great products. A national Trust Bank charter provides us with flexibility to operate across the U.S. while continuing to adhere to the highest regulatory standards.”
Nothing gives the assurance that this application will in fact be granted, but it will usually see a 30-day comment period before it will be decided on. The good news is that Brian Brooks, who is the Acting Comptroller of the Currency, is open to enabling FinTech firms obtain federal charters so that they can scale across the nation.