Paxos, the issuer of digital currencies and stablecoins, has obtained a conditionally approved bank charter under the Paxos National Trust in New York. The Office of the Auditor General of the United States Currency issued preliminary conditional approvals, which means that regulators must still authorize the company’s future banking plans.
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Paxos, a New York-based financial institution and technology company, has received preliminary conditional approval of the Banking Charter of the Office of the Comptroller of Currency (OCC). OCC issued conditional approval information on April 23, 2021, showing the authorization of the company’s application for chartering Paxos National Trust.
“After OCC granted Paxos the charter of the National Trust Bank, [a] The OCC press release stated: “A thorough review of the company and its current operations.” “In granting this charter, the OCC applied the same rigorous review and standards to all charter applications. OCC granted preliminary conditional approval in Paxos. Rear [a] Conduct a thorough review of its application. “
Paxos was established in New York City in 2012, but the company also has offices in Singapore and London. As of December 2020, documents show that Paxos has raised approximately US$240 million in financing since the company was founded. Paxos is also known for issuing stablecoins based on the value of the U.S. dollar and tokens backed by precious metal gold. The preliminary approval status is intended to give Paxos the right to exercise fiduciary rights under 12 USC 92a and 12 CFR 5.26.
Paxos National Trust must obtain final approval from the regulator
Dan Burstein, the general counsel of Paxos, was mentioned in the OCC’s preliminary approval letter. The OCC letter emphasized that the regulator plans to conduct background checks and other checks on Paxos executives.
The OCC letter said: “Therefore, the continued service of these people will depend on whether the background check process is satisfactory.”
The OCC’s approval letter concluded: “Before the bank opens.” “The bank must obtain prior written consent from the OCC before it can object to any other organizers, executive officers or directors in the position.” In addition, if the OCC discovers any problems and any major information changes occur before the OCC makes a final decision, then It can modify, suspend and cancel preliminary conditions.
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