Stablecoin facilitator and digital asset services provider, Paxos, has recently filed an application for a National banking license.
On approval, Paxos General Trust will be headquartered in the financial hub of the United States (New York), authorized to hold cryptos and execute the functions of a normal trust bank.
Why the license matters
According to details seen on its web page, being granted such a license from the American authorities will enable it to expand the range of services offered by the fast-growing crypto company and also increase the geopolitical area to which it can offer services:
- “Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way.”
The report also revealed its present regulatory license, in functioning as a digital custodian and asset management company.
- “Paxos has always embraced a regulation-first approach, and together with the NYDFS, we set the industry standard for regulation in digital asset custody and management.”
The NYDFS ( New York State Department of Financial Services) has demonstrated time and again its commitment to making New York a hub of financial innovation.
- It was the first government agency to take clear and decisive action towards digital assets and has set a standard for all other regulators to follow.
- It was the first regulator to approve the issuance of a digital asset (Paxos Standard, in 2018).
- It was the first regulator to approve the issuance of an asset-backed token (PAX Gold, in 2019).
- It continues to reinvent digital asset regulation, for example with the advent of the virtual currency green list.
What you should know
Nairametrics some months back revealed why Paxo’s crypto asset was gaining traction: “Pax Gold as in recent times has seen the sudden surge in this gold-backed stablecoin, since the era of the COVID-19 pandemic, which appears to be driven by increased awareness of its unique features, which include access to gold without bullion fees or other storage costs.”
- PAX Gold (PAXG) is a crypto asset backed by Gold.
- A PaxoGold digital coin is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s gold vaults.
- Any entity or individual who owns PAX Gold owns the underlying physical gold held in custody by Paxos Trust Company.