Paxos refutes bank charter rejection rumors

Paxos, a brokerage firm and stablecoin issuer, said it had not been denied a national bank license by the Office of the Comptroller of the Currency (OCC).

On February 7th, rumors circulated that the OCC had denied Paxos a bank license. This stemmed from the preliminary authorization Paxos obtained from the OCC, which was set to expire if Paxos did not open a licensed bank within his 18 months.

OCC 2021 preliminary approval

OCC is April 202122 months have passed since that date, so the start is delayed by 4 months.

Paxos categorically denied all rumors on February 8th. TweetThe OCC has not rejected the charter application and the regulator has not sought to withdraw the application.

Paxos will continue to work constructively with OCC.

If Paxos acquires the charter, it will operate as a federally regulated digital asset bank alongside competitors Anchorage and Protego. It will be able to operate across the United States without having to obtain a license in each individual state.

NYDFS investigation rumors surface

Another rumor surfaced on Feb. 9 suggesting that Paxos is facing an investigation from the New York Department of Financial Services (NYDFS).

These rumors do not disclose the reasons for the supposed investigation, and neither party has publicly acknowledged the investigation.

Paxos is responsible for the stablecoins Binance USD (BUSD) and Pax Dollar (USDP). It also operates a crypto broker and powers PayPal’s crypto trading capabilities.