#The Emergence of Paxos: A Game Changer in the Stable Currency Market

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, the stable currency issuer, has been making waves in the digital asset market. Recently, the US Office of the Comptroller of the Currency (OCC) approved Paxos to divide its business into two entities, enabling it to submit a national banking license application. The move is set to shake up the stable currency market as Paxos gains the ability to freely store US dollars and cryptocurrencies, offer nationwide stable currency services, and operate exchanges nationwide.
##Understanding Paxos
Paxos is an infrastructure provider for the digital asset market, offering exchange, settlement, and issuance services. Founded in 2012, the company is licensed and regulated in the US and operates globally. Paxos’ main focus is on stablecoins, digital currencies that are backed by a reserve asset, such as US dollars.
##Paxos’ Move to Gaining National Banking License
According to reports, Paxos initially submitted a national banking license application in December 2020, which expired on March 31. However, the OCC approved Paxos to divide its business into two entities and enabled the company to submit a national banking license application.
This move is set to revolutionize the stable currency market, as Paxos now has the ability to provide stablecoin services nationwide, store US dollars and cryptocurrencies, and operate exchanges nationwide. The OCC’s approval also sets a precedent for other stablecoin providers, as they may also consider applying for national banking licenses.
##What This Means for the Stable Currency Market
Paxos’ national banking license application approval has significant implications for the stable currency market. As a regulated national bank, Paxos can now compete with traditional banks and offer financial services that were previously out of reach.
Paxos can now offer a wide range of stablecoin services, including custody, issuance, trading, and redemption on a nationwide basis. Additionally, Paxos can hold customer deposits and conduct lending and payment services.
As a result, Paxos’ move to gaining a national banking license is set to expand access to stablecoin services and further bridge the gap between traditional finance and digital assets.
##The Future of Paxos
Paxos’ move to obtaining a national banking license is only the beginning, as the company is also set to launch its own stablecoin, Pax Dollar (USDP). According to reports, Pax Dollar will be fully backed by US dollars held in FDIC-insured banks and will be regulated and audited in accordance with federal law.
Pax Dollar will be available initially on the Ethereum blockchain, with plans to expand to other blockchain platforms. The launch of Pax Dollar is set to challenge the dominance of Tether, the most widely used US dollar-backed stablecoin, and propel Paxos to the forefront of the stablecoin market.
##Conclusion
Paxos’ move to obtaining a national banking license is set to change the stable currency market. The approval enables Paxos to provide nationwide stablecoin services, hold customer deposits, and conduct traditional banking services. As Paxos launches its own stablecoin, the Pax Dollar, the company is set to further disrupt the stablecoin market and compete with traditional banks.
##FAQs
1. What is Paxos?
Paxos is an infrastructure provider for the digital asset market, offering exchange, settlement, and issuance services.
2. What is a stablecoin?
A stablecoin is a digital currency that is backed by a reserve asset, such as US dollars.
3. What is Pax Dollar?
Pax Dollar is a stablecoin, fully backed by US dollars held in FDIC-insured banks. It is set to challenge the dominance of Tether in the stablecoin market.
##Keywords
Paxos, Stablecoin, National Banking License, OCC, Pax Dollar