Paxos, a regulated blockchain infrastructure and tokenization platform, announced that it has filed an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC).
This move will place Paxos under federal oversight and “underscores its consistent commitment to maintain regulatory standards of any blockchain infrastructure and tokenization platform globally.”
Since 2015, the company has operated under “oversight from the New York State Department of Financial Services (NYDFS) when it became the blockchain and tokenization company to be granted a limited purpose trust charter and issued the first regulated stablecoin in 2018.”
An OCC national trust charter will reinforce Paxos’s commitment to maintaining the highest global standards for safety and transparency.
Upon approval, Paxos would be regulated “by the OCC in the United States, alongside existing oversight from FIN-FSA in Europe, MAS in Singapore, and FSRA in the Abu Dhabi Global Market.”
This multi-jurisdictional framework provides “access to Paxos solutions and assets to enterprises worldwide.”
All Paxos-issued assets will remain fully backed “by bankruptcy-remote reserves held in U.S. dollars, U.S. Treasuries, and cash equivalents, ensuring guaranteed 1:1 redemption.”
Their customers can expect “uninterrupted service and a seamless transition as we pursue this new chapter of federal oversight.”
As covered, Paxos is the regulated blockchain infrastructure and tokenization platform.
Its products are described as the foundation for a “new, open financial system that can operate faster and more efficiently.”
Today, trillions of dollars are said to be locked in inefficient, “outdated financial plumbing that is inaccessible to millions of people.”
Paxos claims that is replatforming the financial system to “enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.”
Paxos partners with global enterprises “to tokenize, custody and trade assets.”
Its blockchain solutions are used by firms “like PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank.”
Paxos is licensed to engage “in virtual currency business activity by the NYDFS and is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).”
Its affiliate company, Paxos International, issues the “yield-bearing regulated stablecoin Lift Dollar (USDL). Global Dollar (USDG) is issued by Paxos Digital Singapore, which is a Major Payments Institution supervised by the Monetary Authority of Singapore.”
USDG is also issued by Paxos Issuance Europe “under the supervision of FIN FSA and in compliance with MiCA. USDG is also available on Solana.”
Prudentially regulated by FIN-FSA in Europe, the NYDFS in the US, the MAS in Singapore and FSRA in Abu Dhabi Global Market, Paxos is a fintech company with more than “$500 million raised from investors including Oak HC/FT, Declaration Partners, Founders Fund and PayPal Ventures.”
