The post Paxos Pursues National Trust Charter to Obtain Federal Oversight appeared first on Coinpedia Fintech News
Paxos, an established real-world assets (RWA) tokenization company, has announced plans to broaden its market share. The company announced that it applied to convert its charter under the New York Department of Financial Services (NYDFS) into a national charter.
Paxos filed for a national charter with the Office of the Comptroller of the Currency (OCC). Once approved, Paxos will end its NYDFS chatter obtained in 2015 and enhance its standard for safety and transparency under federal oversight.
“By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available. This is rooted in our belief in the transformative power of blockchain as a force for financial freedom. OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency,” Charles Cascarilla, CEO and co-founder of Paxos, noted.
Paxos and the Stablecoin Market
Paxos has grown over the years in tandem with the mainstream adoption of stablecoins and digital assets. In addition to regulatory compliance in the United States, Paxos is regulated in Europe via the FIN-FSA, in Singapore via the MAS, and in Abu Dhabi through the FDRA.
The company has partnered with several firms to issue their respective stablecoins led by PayPal USD (PYUSD), Pax Dollar (USDP), and Global Dollar (USDG). Paxos anticipates to grow its portfolio of stablecoins through competitive yield bearing on different chains led by Solana (SOL).
The stablecoins market is well-primed to grow exponentially in the coming years fueled by the clear regulatory frameworks in the United States. For instance, more traditional financial institutions have ventured into the stablecoins market following the enactment of the GENIUS Act by President Donald Trump.