Paxos has filed a legal application to open a commercial bank on Wednesday. If approved, the pioneering Paxos General Trust is going to be headquartered in New York, licensed to hold cryptocurrencies and execute the duties of a regular trust bank.
In line with a recent official web-blog post on the Paxos website, being granted a National Trust bank charter from the United States government would broaden both the range of services offered by the firm and therefore the geographical area to which it offers services:
“Our mission is to modernize financial market infrastructure and permit the movement of any asset, any time, within a trustworthy way. A National Trust Charter would help us realize our goal by permitting us to serve users across the country within the most effective way.”
If approved, the application would mark the primary time that a steward of virtual assets was regulated at both the state and federal levels within the United States. One among the primary firms to receive New York State’s coveted BitLicense, Paxos is already regulated by the state’s Department of Financial Services [NYDFS]. Earlier in 2015, the firm – then referred to as ItBit – became the primary “virtual currency” services provider to receive a charter from NYDFS.
Earlier in October, Paxos collaborated with PayPal to offer trading and custodial services associated with cryptocurrencies supported by the payments giant. “PayPal’s selection of Paxos is a reflection of New York’s status as the gold standard for cryptocurrency regulation,” added Paxos CEO Charles Cascarilla within an official press release regarding the partnership announcement.
Additionally, providing services for PayPal, Paxos continues to operate the ItBit exchange, offer cryptocurrency brokerage services, and maintain stablecoins PAX, BUSD, and PAXG. The firm was founded earlier in 2012, has offices in New York, London & Singapore thereby employs around 150 people.