Paxos has reapplied for a US national trust bank charter after its 2021 conditional approval expired. Paxos Trust Company, the crypto infrastructure company behind PayPal’s PYUSD stablecoin, has filed to convert its New York limited-purpose trust charter into a US national trust bank charter, renewing an effort that expired in 2023. If approved, the federal charter, issued by the Office of the Comptroller of the Currency (OCC), would allow Paxos to custody customer assets and settle payments nationwide under federal oversight, potentially boosting its appeal to institutional clients. Unlike traditional banks, a national trust bank cannot accept cash deposits or issue loans. “OCC oversight will help build on our historic commitment to maintaining the highest standards of safety and transparency," Paxos co-founder and CEO Charles Cascarilla said in a statement. Read more
The US GENIUS Act may boost stablecoin adoption, but its ban on yield-bearing stablecoins could drive trillions into tokenized real-world assets. The landmark US GENIUS Act could serve as a major catalyst for stablecoin adoption both domestically and abroad. But rather than simply boosting demand for dollar-backed digital currencies, it may unintentionally push capital into the tokenization market as investors seek yield on their holdings. That was one of the key takeaways from a recent interview with Will Beeson, a former Standard Chartered executive and now founder and CEO of Uniform Labs, a developer of institutional liquidity solutions for tokenized financial markets. A central provision of the GENIUS Act is its blanket ban on yield-bearing stablecoins, which prevents holders from earning interest on their digital dollar balances. According to Beeson, this restriction will accelerate the flow of capital into tokenized real-world assets (RWAs). Read more