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.
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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.”
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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.”
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About NYDFS
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.
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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.”
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- 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.