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Paxos Filed An Application To Open A National Bank To Hold Cryptocurrencies

Paxos, the crypto services provider, has filed an application to open a national bank on Wednesday to hold cryptocurrencies and execute the duties of a regular trust bank. If approved, the pioneering Paxos General Trust will be headquartered in New York.

It has been reported by the Paxos website that being granted a national trust bank charter from the US government would broaden both the range of services offered by the company and the geographic area to which it can offer services. 

It stated:

“Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way.”

However, the report said that if approved, the application would mark the first time that a steward of digital assets was regulated at both the state and federal levels within the US. One of the first companies to receive New York State’s coveted BitLicense, Paxos is already regulated by the state’s Department of Financial Services (NYDFS).

In 2015, the company, earlier known as ItBit, became the first “virtual currency” services provider to receive a charter from NYDFS.

Only a couple months after it partnered with PayPal, Paxos has set its sights on an even bigger customer base. — Cointelegraph (@Cointelegraph) December 10, 2020

Likewise, in October, Paxos partnered with PayPal to provide trading and custodial services related to cryptocurrencies supported by the payments giant.

Charles Cascarilla, the CEO of Paxos, said in a press release about the partnership announcement:

“PayPal’s selection of Paxos is a reflection of New York’s status as the gold standard for cryptocurrency regulation.”

In addition to providing services for PayPal, Paxos continues to operate the ItBit exchange, offer crypto brokerage services, and maintain stablecoins PAX, BUSD and PAXG. 

Thus, the company was founded in 2012, has offices in New York, London and Singapore, and employs around 150 people.

Source: Cointelegraph

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