The digital currency and stablecoin issuer Paxos has received conditional approval for a bank charter under the Paxos National Trust in New York. The US Office of the Comptroller of the Currency has issued preliminary conditional approval, meaning the regulatory entity has yet to approve the company’s future banking plans.
Paxos has provisionally approved a charter from a US bank
New York-based financial institution and technology company Paxos has received preliminary conditional approval for a bank charter from the Office of the Comptroller of the Currency (OCC). The OCC published conditional approval information on April 23, 2021, showing that the company’s application to charter the Paxos National Trust has been approved.
The OCC subsequently granted Paxos a charter from the national trust bank [a] thorough evaluation of the company and its current activities, ”said the OCC press release. “In awarding this charter, the OCC applied the same rigorous assessment and standards that were applied to all charter applications. The OCC then granted provisional conditional approval to Paxos [a] thorough assessment of the application. “
Paxos was founded in 2012 in New York City, but the company also has offices in Singapore and London. In late December 2020, documents show that Paxos has raised approximately $ 240 million in funding since the company’s inception. Paxos is also known for issuing a stablecoin based on the value of the US dollar and a token also backed by the precious metal gold. Provisional approval status is intended to empower Paxos to exercise fiduciary powers under 12 USC 92a and 12 CFR 5.26.
Paxos National Trust must get final regulatory approval
Paxos General Counsel Dan Burstein is addressed in the OCC’s preliminary letter of approval. The letter from the OCC emphasizes that the regulatory entity intends to process background checks and other reviews from Paxos management personnel.
“Accordingly, the continued service of these individuals will depend on satisfactory completion of the background research process,” said the OCC letter.
“Prior to bank opening,” the OCC’s letter of approval concludes. “The bank must obtain the prior written decision from the OCC that there is no objection to any additional organizers or executive officers or directors appointed or elected prior to the person taking over the position.” Further, if the OCC finds issues, it can change, suspend and revoke the pre-conditions if material information changes prior to the OCC’s final decision.
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