Paxos Receives Approval to Provide Stable Currency Services

According to reports, records from the US Office of the Comptroller of the Currency show that the stable currency issuer Paxos initially submitted a national banking license application in December 2020 and expired on March 31. Previously, OCC approved Paxos to divide its business into two entities, one regulated at the national level and the other maintaining its existing regulatory structure. This means that Paxos can freely store US dollars and cryptocurrencies, provide stable currency services nationwide, and operate exchanges nationwide.

Stable currency issuer Paxos National Bank License Application Expires

Paxos, a stable currency issuer, has received regulatory approval from the US Office of the Comptroller of the Currency to provide nationwide stable currency services. This follows the company’s initial application for a national banking license in December 2020, which expired on March 31. Previously, the OCC had approved Paxos to divide its business into two entities, one regulated at the national level and the other maintaining its existing regulatory structure.

Background

Paxos was established in 2012 as itBit, a bitcoin exchange. In 2015, the company changed its name to Paxos and began offering settlement services. Paxos has since grown, developing into a leading provider of blockchain solutions for the financial and real estate sectors. It offers stable currencies, gold tokens, and other blockchain-based solutions.
The Office of the Comptroller of the Currency is an independent bureau within the US Department of the Treasury, responsible for regulating and supervising all national banks, federal savings associations, and federal branches and agencies of foreign banks.

Paxos’ Expired Initial Application

Paxos had applied for a national banking license in December 2020, hoping to become a national bank regulated by the OCC. According to reports, the application expired on March 31. However, the OCC had approved Paxos to divide its business into two entities, one regulated at the national level and the other maintaining its existing regulatory structure.
This means that Paxos’ national bank entity can freely store US dollars and cryptocurrencies, provide stable currency services nationwide, and operate exchanges nationwide. The company’s existing financial technology entity can continue to operate its blockchain-based solutions, such as its post-trade settlement platform and blockchain-based real estate platform.

Significance of the Approval

The approval of Paxos’ national banking license application is significant as it enables the company to provide stable currency services nationwide. Stable currencies are digital currencies that are pegged to a stable asset, such as the US dollar. They are designed to provide the benefits of cryptocurrency, such as fast transactions and low fees, while retaining the stability of fiat currency.
Stable currencies are becoming increasingly popular among investors and businesses who want to avoid the volatility of cryptocurrencies but still benefit from blockchain technology. Paxos’ approval to provide stable currency services nationwide will likely attract more customers to the company and further strengthen its position as a leading provider of blockchain solutions.

Conclusion

Paxos, a stable currency issuer and provider of blockchain solutions, has received regulatory approval from the US Office of the Comptroller of the Currency to provide nationwide stable currency services. This follows the company’s initial application for a national banking license in December 2020, which expired on March 31. The approved national bank entity can freely store US dollars and cryptocurrencies, provide stable currency services nationwide, and operate exchanges nationwide. This approval is significant as it enables Paxos to attract more customers and further strengthen its position as a leading provider of blockchain solutions.

FAQs

1. What is Paxos?
– Paxos is a stable currency issuer and provider of blockchain solutions.
2. What is a stable currency?
– A stable currency is a digital currency that is pegged to a stable asset, such as the US dollar. It provides the benefits of cryptocurrency while retaining the stability of fiat currency.
3. What is the significance of Paxos’ national banking license approval?
– Paxos’ national banking license approval enables the company to provide stable currency services nationwide, attracting more customers and further strengthening its position as a leading provider of blockchain solutions.