OCC grants preliminary conditional approval to charter Paxos

By Pavithra R

The Office of the Comptroller of the Currency (OCC) has announced granting preliminary conditional approval of the application to charter Paxos National Trust, a regulated financial institution building infrastructure to enable movement between physical and digital assets.

The preliminary conditional approval also grants to the Bank the authority to exercise fiduciary powers under 12 USC 92a and 12 CFR 5.26. The OCC granted the national trust bank charter to Paxos after a thorough review of the application, materials supplied by the applicant’s representatives, and all information available to the OCC, including commitments and representations made in the application and during the application process.

The OCC has granted preliminary conditional approval only. Final approval and authorization for the Bank to open and engage in fiduciary activities will not be granted until all pre-opening requirements are met. The Bank will be an uninsured national bank whose operations will be limited to those of a trust company and activities related thereto.

Founded in 2012, Paxos is on a mission to modernize finance by mobilizing assets at the speed of the internet. The company aims in making it possible to move any assets anywhere, instantly and thereby democratize access to a new, global, frictionless economy.

The federal banking system includes nearly 1,200 national banks, federal savings associations, and federal branches of foreign banking organizations operating in the U.S. that range in size from 1,000 smaller community banks under $10 bn in assets focused on meeting local needs to the largest internationally active banks. These banking companies conduct a wide array of businesses that range from retail and wholesale banking activity to trust, credit card and other more narrowly focused services.