Paxos follows Circle and Ripple! Applies for a U.S. banking license to seize the regulatory initiative for stablecoins.

Stablecoin and tokenization service provider Paxos announced that it has submitted a national trust charter application to the Office of the Comptroller of the Currency (OCC), aiming to conduct business nationwide. This move follows closely behind Circle and Ripple, indicating that stablecoin giants are accelerating their race for banking licenses to gain an advantage in the new era of regulation.

Paxos applies for national bank license

Paxos currently holds a license issued by the New York Department of Financial Services (NYDFS), and if approved by the OCC, it will upgrade to a national trust charter, allowing it to operate nationwide and accept federal regulation.

A Paxos spokesperson stated: "OCC is the world's leading banking regulatory body. Obtaining national-level certification will bring new opportunities for growth and efficiency while complying with the highest regulatory standards."

The company emphasized that the national charter will enable it to provide stricter and more efficient solutions for its clients against the backdrop of the upcoming stablecoin legislation at the federal level.

Follow the strategic layout of Circle and Ripple

The actions of Paxos are not isolated events. Previously, the stablecoin issuer Circle and the cryptocurrency payment company Ripple have successively submitted applications for national bank charters to the OCC.

Ripple CEO Brad Garlinghouse stated that if approved, Ripple will simultaneously accept both state and federal dual regulation, which is a rare model in the cryptocurrency industry.

Circle, as the issuer of USDC, is also actively seeking a national regulatory framework to strengthen the compliance of its global payment network.

This series of applications comes after the United States signed the GENIUS Act and OCC announced the allowance for national banks to manage, purchase, and sell the crypto assets they custody, significantly enhancing regulatory transparency.

Paxos' Business Landscape and Recent Challenges

Paxos is headquartered in New York, with business covering stablecoin issuance, tokenization, custody, and trading services.

Product line: Issuing PayPal's PYUSD and gold-backed stablecoin PAXG.

Partners: international financial and e-commerce giants such as Mastercard, Interactive Brokers, MercadoLibre, etc.

Recent Events: Last week, Paxos reached a settlement regarding regulatory charges related to the issuance of Binance stablecoin (BUSD), paying a fine of $26.5 million to the State of New York.

Paxos stated that it has fully enhanced the precision of its operations in order to provide customized products and services for the largest financial institutions globally.

The Stablecoin Competition in the New Era of Regulation

Analysts point out that as the regulatory framework for cryptocurrency in the United States becomes clearer, stablecoin issuers holding a national bank charter will gain significant advantages in areas such as market trust, institutional collaboration, and cross-border payments.

Regulatory advantages: Federal-level regulation can reduce legal risks and attract more institutional funds.

Market Impact: Banking licenses will pave the way for stablecoins to enter the traditional financial system.

Competitive Landscape: The simultaneous applications of the three giants Paxos, Circle, and Ripple indicate that the stablecoin market will face more intense regulatory competition.

Conclusion

Paxos follows Circle and Ripple in applying for a banking license in the United States, marking a new phase of "compliance competition" in the stablecoin industry. With the implementation of the "GENIUS Act" and the OCC's open attitude towards the management of crypto assets, companies that obtain national-level regulatory certification will occupy a first-mover advantage in the global stablecoin market. For more updates on crypto regulation and market dynamics, please follow the official Gate platform.