OCC Grants Crypto Firm Paxos ‘Conditional Approval’ for US Bank Charter – Finance Bitcoin News
Paxos, issuer of digital currencies and stablecoins, has received conditional approval for a bank charter under the name Paxos National Trust in New York. The Office of the U.S. Comptroller of the Currency has granted conditional preliminary approval, meaning the regulator has yet to approve the company’s future banking plans.
Pax conditional approval of the U.S. Bank Charter
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 announced on 23. In April 2021, information was provided regarding the conditional approval of the Paxos National Trust’s charter application for the Company.
The OCC has granted Paxos a national trust bank charter after a thorough examination of the company and its current operations, the OCC said in a press release. In awarding this charter, the CCO applied the same rigorous controls and standards that apply to all charter applications. The JCC granted Paxos conditional preliminary approval after a thorough review of the application.
Founded in New York in 2012, Paxos also has offices in Singapore and London. By the end of December 2020, Paxos had raised about $240 million since its inception, the documents show. Paxos is also known for issuing a stablecoin based on the value of the US dollar, and a token backed by the precious metal gold. The pre-approval status is intended to give Paxos the authority to exercise fiduciary powers pursuant to 12 USC 92a and 12 CFR 5.26.
Paxos National Trust to obtain final regulatory approval
Dan Burstein, general counsel for Paxos, addressed the OCC in a preliminary approval letter. The UCC’s letter notes that the regulator intends to address the results of background checks and other checks of Paxos executives.
Further service on these individuals will therefore be subject to the satisfactory completion of the preliminary investigation, the UCC letter said.
Prior to the bank opening, the MAC approval letter expires. The Bank shall obtain a prior written determination from the OCC that there is no objection to the appointment or election of additional members of the Board of Directors or officers or directors before the person takes office. In addition, if the CCM identifies concerns, it may modify, suspend, or withdraw prior conditions if important information changes before the CCM makes a final decision.
What do you think of Paxos’ conditional approval for a banking license in the US? Let us know what you think in the comments below.
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banking license, conditional approval, crypto banking, cryptocurrency, Dan Burstein, digital assets, federal oversight, gold token, New York, OCC, Office of the Comptroller of the Currency, Paxos, Paxos National Trust, Stablecoin, U.S. OCC
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