The stablecoin issuer and crypto services company Paxos has registered as a federally regulated bank in the United States.
The bank would operate out of New York (where Paxos is already located). The company, which already has a New York escrow deed and a number of licenses, currently provides cash custody, gold custody, cryptocurrency services, digital asset issuance, securities settlement, commodity trading, and other services.
In particular, the company’s crypto brokerage offering was used by PayPal earlier this year to run the payment giant’s cryptocurrency service.
“US. The law is organized at both state and federal level. The national charter was specifically designed so that banks can conduct their business more easily across national borders. This flexibility allows a young company like Paxos to focus its resources on development A national charter from the Trust Bank gives us the flexibility to operate in the US while maintaining the highest regulatory standards, ”General Counsel Dan Burstein said in a blog post.
As with BitPay, the application will see a 30 day comment period as the next step in the process before it can continue. However, there is no guarantee that it will be granted. However, acting auditor Brian Brooks has said in public statements that he would like fintech companies – like crypto companies – to secure federal deeds so they can operate more easily across the country.
Anchorage filed a federal deed earlier last month, although the status of that application is unclear.
If these companies were approved, they would join Kraken and Avanti as some of the first crypto-native banks in the US, though the latter two state charters were secured by the Wyoming Division of Banking instead of going federal.
UPDATE (December 9, 10:55 PM UTC): This article has been updated with additional information.