Paxos refiles for federal license

Paxos Trust Company has refiled an application to convert its status from a New York limited-purpose trust into a US national trust bank charter. If approved by the Office of the Comptroller of the Currency (OCC), the company will be able to hold assets and settle payments nationwide under federal oversight.

This move follows the adoption of the GENIUS Act, the first federal legislative framework for stablecoin issuers, which bans yield-bearing stablecoins. Industry analysts believe the new law could channel capital toward tokenized assets as institutions seek compliant ways to generate yield.

The current filing comes after a $48.5 million settlement with the New York Department of Financial Services (NYDFS) and amid growing market interest in tokenization.