New York-based Paxos Acquires Federal Bank Charter From OCC

Sahaj  |  Apr 24, 2021

In a recent announcement, it has been revealed that Paxos based in New York has acquired a Federal Bank charter from OCC. The Office of the Comptroller of the Currency, which oversees the banks of the country, has granted a federal banking charter to a crypto company for the third time.

Paxos Acquired Federal Bank Charter From OCC

It was announced on Friday that the agency has provided it with the provisional approval for the charter, a destination that will be allowing it to easily conduct business across state lines.

This move is notable in part because Paxos, which applied for the charter in the month of December, has quietly become a powerhouse in the fast-growing crypto industry.

The firm is providing back-end services for the crypto operations of PayPal and has been a pioneer in developing tokenized versions of gold, corporate shares, and even other orthodox assets. 

In addition to this, Paxos has the availability of stablecoins on its platform. The very first federal bank charter to a crypto firm this year was granted by the Office of the Comptroller of the Currency when it awarded one of them to a custody firm growing with pace, Anchorage.

Along with this, the agency granted a second one to Protego in the month of February, a little-known trading and lending company.

The Decision to Bestow Federal Charter

The decision of the Office of the Comptroller is to bestow another federal charter on Paxos is also notable because it came after the former head of the agency, Brian Brooks stepped down in January.

Brian Brooks is going to become the new CEO of the US Business on May 1.

Brooks was an admittedly pro-crypto figure during his tenure at the OCC, making him something of an outlier among Washington regulators, and raising the question of whether the OCC would continue to take a sympathetic view of the crypto companies.

Related News