Paxos, the company behind the stablecoin PYUSD in partnership with PayPal, took a bold step: it re-applied to become a national trust bank in the U.S.
👉 This means moving from restricted licensing in New York to operating under federal supervision — synonymous with more security, transparency, and credibility.
⚡ Important highlights:
This is Paxos's second attempt: in 2020 it applied, received conditional approval in 2021, but the application expired in 2023. Other giants, such as Circle and Ripple, are also seeking this status; so far, only Anchorage Digital holds the license. Paxos recently ended the issuance of BUSD and reached a settlement of US$ 48.5 million with New York regulators for compliance failures. The new legal landscape in America has brought clarity to stablecoins, making it the perfect time for this advancement.
🔥 What does this change?
This step could redefine trust in stablecoins, bringing the crypto universe even closer to the traditional financial system.
✨ Do you believe that federal supervision will bring more trust to cryptos or will it stifle innovation?