Paxos seeks permission to become fully-regulated crypto bank. Stablecoin founder and crypto service provider Paxos filed an application to open a national bank on Wednesday. If approved, the pioneering Paxos General Trust will be headquartered in New York City, licenced to hold cryptocurrencies and perform the duties of a standard trust bank.
According to a blog post on the Paxos website, a national trust bank charter from the U.S. government will extend both the variety of services provided by the organisation and the geographic area to which it would provide services.
“Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. 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.”
If approved, the application would mark the first time that a steward of digital assets was regulated at both the state and federal levels within the U.S. One of the first companies to receive New York State’s coveted BitLicense. Paxos is already regulated by the state’s Department of Financial Services (NYDFS). In 2015, the company — then known as ItBit — became the first “virtual currency” services provider to receive a charter from NYDFS.
In October, Paxos collaborated with PayPal to provide cryptocurrency-related trading and custodial services backed by the payment giant.“PayPal’s selection of Paxos is a reflection of New York’s status as the gold standard for cryptocurrency regulation,” said 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 stablecoins PAX, BUSD and PAXG. The company was founded in 2012, has offices in New York, London and Singapore, and employs around 150 people.