Paxos has filed a new application with the U.S. Office
of the Comptroller of the Currency to secure a national trust charter,
seeking to replace its New York state license with federal oversight.

The move comes shortly after Circle and Ripple
submitted similar filings, marking an intensifying race among stablecoin
issuers for national regulatory status.

Today, we announced that we have filed an application to convert our NYDFS trust charter into a national trust charter under the Office of the Comptroller of the Currency.https://t.co/gVMdwteuLI

— Paxos (@Paxos) August 11, 2025

From State to Federal Supervision

In a Monday statement, Paxos said it plans to convert
its New York Department of Financial Services trust charter into a national
one, placing the firm under OCC authority. CEO Charles Cascarilla said the
change would strengthen “safety and transparency” in its operations.

Related: Circle Moves to Become a US National Trust Bank after Bumper IPO

The company issues PYUSD in partnership with PayPal
and is part of the consortium behind the Global Dollar (USDG) token. “By applying for a national trust bank charter, we are
continuing to offer enterprise partners and consumers the safest, most trusted
infrastructure available,” commented Charles Cascarilla, CEO and
co-founder of Paxos.

Regulatory Momentum Builds

Circle, which issues the $65 billion USDC, and Ripple,
issuer of RLUSD, applied for national bank trust charters last month. Their
filings came after President Donald Trump signed the GENIUS Act into law,
introducing new federal rules for stablecoin issuers.

Paxos previously gained conditional approval for a
national trust charter in 2021, but the application expired in 2023 before
receiving full authorization.

Last month, Ripple applied for a national trust
charter from the U.S. Office of the Comptroller of the Currency (OCC), a move
that would have allowed the crypto firm to expand its services nationwide under
federal regulation.

True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.Earlier in the week via… https://t.co/IdiR7x3eWZ

— Brad Garlinghouse (@bgarlinghouse) July 2, 2025

The application, confirmed by a company spokesperson,
marked a strategic shift toward deeper regulatory engagement at the national
level. The decision aligned Ripple with a growing list of
crypto firms seeking national oversight amid evolving U.S. legislation.

This article was written by Jared Kirui at www.financemagnates.com.