OCC conditionally approves Paxos bank charter

The OCC conditionally approved the ICBA-opposed trust bank charter application from Paxos, a cryptocurrency platform.

Charter: Paxos applied to charter Paxos National Trust. The trust bank would offer custody, fiduciary, and “know your customer” services; custody and management of stablecoin reserves; and “other cryptocurrency services.”

ICBA Position: In a joint letter earlier this year, ICBA and other groups said more information is needed about the applications from Paxos and BitPay. The groups cited vague language in the applications, said they don’t appear to meet trust bank fiduciary requirements, and urged the OCC to postpone the application process and provide more information.