Paxos, the blockchain infrastructure and tokenisation platform, announced on Monday that it has applied to convert its New York trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC).
The move would place Paxos under direct U.S. federal oversight, replacing its current New York Department of Financial Services (NYDFS) authorisation, and reflects what the company described as its “consistent commitment to maintain the highest regulatory standards of any blockchain infrastructure and tokenisation platform globally.”
Paxos has operated under NYDFS oversight since 2015, when it became the first blockchain and tokenisation company to receive a limited-purpose trust charter. In 2018, it issued the first regulated stablecoin.
Approval of the OCC charter would see Paxos regulated in the United States alongside its existing oversight from the Financial Supervisory Authority in Europe, the Monetary Authority of Singapore, and the Financial Services Regulatory Authority in the Abu Dhabi Global Market.
The firm said this multi-jurisdictional framework gives enterprises “unmatched access” to its solutions and assets worldwide.
“For over a decade, Paxos has set the bar for regulatory oversight and compliance,” said Charles Cascarilla, chief executive and co-founder. “By applying for a national trust bank charter, we are continuing to offer enterprise partners and consumers the safest, most trusted infrastructure available.”
Paxos said all its issued assets remain fully backed by reserves in U.S. dollars, Treasuries and cash equivalents, with guaranteed 1:1 redemption.
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