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Paxos Renews National Trust Charter Application After $48.5 Million NYDFS Settlement

The bid joins filings from Circle and Ripple in a push for federal approval under the GENIUS Act’s newly enacted stablecoin rules.

Representations of cryptocurrencies are seen in front of displayed words "Cryptocurrency market" and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Paxos applies for national bank trust charter, joining stablecoin issuers circle, ripple
Paxos applies for U.S. trust bank license with OCC
Paxos joins Ripple and Circle in pursuit of US trust bank licenses

Overview

  • Paxos filed a renewed application to the OCC on August 11, 2025, renewing a bid that first won conditional approval in 2021 before expiring in 2023.
  • The firm agreed to pay $48.5 million to the New York Department of Financial Services to settle compliance violations linked to its Binance partnership, allocating $22 million for system upgrades.
  • Congress passed the GENIUS Act in July, establishing the first federal regulatory framework for stablecoins and prompting national trust charter filings.
  • Reports conflict on whether a national trust charter would permit Paxos to accept deposits or extend loans, highlighting ongoing legal ambiguity over charter powers.
  • Other major stablecoin issuers, including Circle and Ripple, have submitted national trust charter applications, intensifying the competition for federal oversight.