Paxos Gets OCC Approval for a Bank Charter

Digital asset services firm Paxos has been conditionally approved for an OCC bank charter and cleared to create an entirely new bank.

article-image

Charles Cascarilla, Paxos CEO and co-founder

share

key takeaways

  • Paxos is the third entity to receive conditional approval for an OCC bank charter
  • The New York-based digital asset services company is the first to achieve “de novo” status, allowing it to set up a completely new bank in addition to its current trust

Paxos has been conditionally approved for a bank charter from the US Office of the Comptroller of the Currency (OCC), becoming the first crypto firm to get the green light to create an entirely new bank. 

The charter will allow Paxos to easily conduct business across the country. The approval means Paxos will be able to operate two trusts, potentially by the end of next year, one under a national bank charter, one under the New York BitLicense.

This is the third such charter the OCC, which oversees bank charters and structure, has conditionally approved. In January digital assets custody firm Anchorage received a license, allowing it to operate as a “crypto bank” and the following month Protego, a digital asset trust company focused on institutional investors, became the second.

Paxos is the first to have a “de novo” application to be cleared, however, allowing it to set up a completely new bank in addition to its current trust, which operates under the New York State Department of Financial Services BitLicense.

The New-York based Paxos applied for the charter in December after quietly becoming a staple of the crypto ecosystem. Paxos provides services that support PayPal’s cryptocurrency offerings and offers tokenized versions of traditional assets like gold and corporate shares. 

The OCC’s former head Brian Brooks left his position with the agency in January. Brooks, who was known as one of very few crypto-advocates at the OCC, is set to become the new CEO of Binance’s US operations on May 1.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

Commissioner Peirce would have done things differently if she could when it comes to her agency’s crypto enforcement actions

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US