Paxos might be leveling up from crypto infrastructure heavyweight to fully licensed U.S. trust bank — a move that could shake up stablecoin issuance and give Wall Street a Web3 makeover.
Paxos has been here before. Back in 2021, the Office of the Comptroller of the Currency (OCC) gave it a green light — but only conditionally. By 2023, the clock ran out.
Now, sources say Paxos is back in the ring, applying again for a full trust bank license. If approved, it could open the door to:
USDP, Paxos’s dollar-pegged stablecoin, sits at a modest 66.94M market cap, but the firm’s real power is in its infrastructure muscle — powering other big-name stablecoins and settlement rails.
A trust bank license could:
The timing isn’t random. Stablecoin regulation in the U.S. is heating up, with lawmakers eyeing bank-level oversight for issuers. Securing a trust bank license now could place Paxos ahead of any sudden legislative pivots.
Recent USDP trading volume spikes suggest traders are already positioning for something bigger.
If successful, Paxos could become a bridge institution — speaking both the language of DeFi and the compliance dialect of Washington, D.C.
This would make it a direct competitor to Circle (USDC) in the race for the “most bankable” stablecoin brand.
Paxos is reportedly reapplying for a U.S. trust bank license — a move that could reshape stablecoin issuance and give it a massive compliance edge in the U.S. market. With regulation looming, this could be Paxos’s most strategic power play yet.
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