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Paxos Receives National Banking License Approval from OCC

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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 applic

Paxos Receives National Banking License Approval from OCC

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

Introduction

According to reports, Paxos, a stable currency issuer, has received the much-anticipated national banking license approval from the US Office of the Comptroller of the Currency (OCC). The license application was submitted by Paxos in December 2020 and approved by the OCC, allowing the company to expand its services and operate exchanges nationwide.

Background

Paxos, founded in 2012, provides stablecoin services through its PAX token, which is pegged to the US dollar. The company’s mission is to enable people to move value and assets globally, instantly, and securely.

The Significance of the National Banking License

The national banking license approval by the OCC is a significant milestone for Paxos, as it allows the company to freely store US dollars and cryptocurrencies and provide stable currency services nationwide. The license also enables Paxos to operate exchanges nationwide.

Division of Business

Before receiving the national banking license, the 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 division will allow Paxos to provide better service and a greater range of products to its customers.

Benefits of the National Banking License

The national banking license approval will not only provide more opportunities for Paxos to expand its services, but it will also improve its credibility among customers and investors. Moreover, Paxos will be able to provide more regulated and secure services to its customers.

Conclusion

Paxos’ national banking license approval from the OCC is a significant achievement for the company. This license provides Paxos with an opportunity to expand its services and operate exchanges nationwide. The company’s mission to enable people to move value and assets globally, instantly, and securely will be fulfilled with the national banking license.

FAQs

Q1. What is a national banking license?

A national banking license allows a company to offer banking services in the United States. The license authorizes a company to accept customer deposits, maintain deposit accounts, and issue loans.

Q2. How does the national banking license approval benefit Paxos?

The national banking license approval benefits Paxos by allowing the company to expand its services and operate exchanges nationwide freely. The license also improves Paxos’ credibility among customers and investors and enables it to provide more regulated and secure services to its customers.

Q3. When did the national banking license approval by the OCC come into effect?

The national banking license approval by the OCC came into effect on March 31, 2021.

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