1 August 2026
Crypto Services Provider Paxos Files For National Bank Charter
The crypto company Paxos has filed an application to become a federally-regulated bank in the U.S.
As per the filing, the bank would function out of New York. Paxos already has a New York trust charter and plenty of licenses, currently offers cash custody, gold custody, cryptocurrency services, digital asset issuance, securities clearing, commodities trading, and other services.
Earlier this year, the firm’s crypto brokerage offering was used by PayPal to power the payments giant’s cryptocurrency service.
The general counsel of Paxos, Dan Burstein said in a blog post, “U.S. law is organized at both a state and federal level. The national charter was designed expressly to allow banks to conduct business across state lines more easily. This flexibility allows a young company like Paxos to focus resources on building great products. A national Trust Bank charter provides us with the flexibility to operate across the U.S. while continuing to adhere to the highest regulatory standards.”
If Paxos' application is approved, it will mark the first time that a digital assets firm was regulated at both the state and federal levels. It will become one of the first companies in the US to receive New York State’s coveted BitLicense, Paxos is already regulated by the state’s Department of Financial Services (NYDFS). Back in 2015, the company then known as ItBit became the first “virtual currency” services provider to receive a charter from NYDFS.
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