The NYDFS has always been a fan of innovation favoring the impact Paxos has made in the financial market within the country.
A stablecoin issuer and crypto services provider Paxos is on the verge of becoming a fully operational regulated bank in the US after applying to the Office of the Comptroller of the Currency (OCC). If this application is approved, Paxos would operate as a full trust bank and be mandated to hold cryptocurrencies.
Paxos already has a license of the New York Trust Charter and provides services for cryptocurrency custody, security clearing, digital asset insurance, gold custody, cash custody, commodity trading, and many more. Kraken and Avanti have already taken the lead as the first crypto native banks in the country with Paxos expected to join the list.
Way back in 2015, Paxos, then known as iBit, became the first service provider of virtual currency to receive a charter from the New York Department of Financial Services. Their recent movement will see digital assets being regulated in the US at both the Federal and the State levels for the first time if successful. Paxos has over the years prioritized the movement of any asset at any time without hustle in addition to its mission of ensuring that the financial market infrastructure is modernized.
According to their official statement, there will be a broadened customer base across the country when the National Trust Bank Charter application becomes a success.
As claimed by the statement, the NYDFS has always been a fan of innovation favoring the impact Paxos has made in the financial market within the country. This is evident in their recent partnership with PayPal and the operation of the iBit exchange as well as the Paxos New York Trust Company offering cryptocurrency brokerage.
The regulation of digital assets is still in the early stage with regulators engaging the market participants regularly to support them with the law in a bid to modernize the financial market infrastructures.
Recently, Paxos partnered with PayPal Holdings Inc (NASDAQ: PYPL) to provide cryptocurrency custodial and trading services. Their selection by PayPal was due to their status as the gold standard of cryptocurrency regulations. The virtual currency has been adopted widely in recent times with much good news reported from day to day. The Department of Financial Services has, for instance, approved 26 firms to fully operate in virtual currency-related business activities since 2015.
Paxos is one of the few entities in the US that has a firm stance on ensuring all assets including securities, cash, and gold go through digitization for instant movement. This will ensure that the high amount of money stuck will move in what they term as a global and frictionless economy. This will take out settlement risk from the system. Some of their known products include iBit, Paxos Standard, and precious metals.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
