Stablecoin issuer Paxos has formally applied to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust bank charter with the Office of the Comptroller of the Currency (OCC). The move, announced on August 11, 2025, would transition Paxos from state to federal oversight and enable expanded financial services including asset management, cash deposits, and regulated lending.
Paxos—issuer of PayPal's PYUSD and Pax Dollar (USDP) stablecoins—seeks to build on its 2015 NYDFS charter, the first granted to a blockchain company. CEO Charles Cascarilla emphasized this step reinforces their "historic commitment to maintaining the highest standards of safety and transparency," noting OCC oversight would complement existing approvals from regulators in Singapore, Finland, and Abu Dhabi.
The application follows similar moves by rivals Circle (USDC issuer) and Ripple (RLUSD issuer) last month, intensifying competition in the $65+ billion stablecoin market. This trend aligns with the GENIUS Act signed into law by President Trump in July 2025, establishing federal stablecoin regulations. Paxos previously received conditional OCC approval in 2021, but the application lapsed in 2023 before finalization.