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Paxos Reapplies for US National Trust Bank Charter Amid Regulatory Challenges and Expired Approval

2025-08-11 22:21:00

Main Idea

Paxos has reapplied for a US national trust bank charter to enhance regulatory oversight and operational excellence, following the expiration of its previous conditional approval and a $48.5 million settlement with NYDFS.

Key Points

1. Paxos’ previous national trust bank charter approval expired in March 2023 due to unmet regulatory conditions.

2. The company faced regulatory scrutiny, including a $48.5 million settlement with NYDFS over compliance issues related to Binance USD.

3. Paxos continues to operate under its New York limited-purpose trust charter, held since 2015.

4. The renewed application aims to strengthen regulatory compliance and attract institutional clients.

5. The initial conditional approval from the OCC in 2021 required Paxos to meet capital, compliance, and operational benchmarks before launching.

Description

Paxos has reapplied for a US national trust bank charter, aiming to enhance its services under federal oversight after its previous approval expired in 2023. Paxos aims to custody customer

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