• Paxos denies rumors of OCC bank charter rejection.
• The OCC granted preliminary approval for the charter in April 2021, which is now over due.
• Separate rumors state that Paxos faces a probe from the New York Department of Financial Services (NYDFS).
Paxos Denies Bank Charter Rejection Rumors
Stablecoin issuer Paxos has denied rumors that it has been denied a national bank charter from the Office of the Comptroller of the Currency (OCC). According to Paxos, the OCC has not rejected its application for the charter, nor has it asked them to withdraw their application.
Preliminary Approval From OCC
In April 2021, the OCC granted preliminary approval to Paxos and gave it 18 months to open its chartered bank. It has now been 22 months since that date, making it four months overdue. If approved, Paxos would operate as a federally regulated digital asset bank alongside competitors Anchorage and Protego across all U.S. states without needing individual licenses.
Rumors Of NYDFS Investigation
Separate rumors emerged on Feb 9th suggesting that Paxos faces an investigation from the New York Department of Financial Services (NYDFS). No reasons have been disclosed and neither party has publicly confirmed any probes yet.
Responsible For Binance USD & PAX Dollar
Paxos is responsible for two popular stablecoins: Binance USD (BUSD) and PAX Dollar (USDP). In addition to this, they are also responsible for operating a crypto brokerage as well as powering PayPal’s crypto trading capabilities.
Continuing To Work Constructively With The OCC
Despite all these rumors, Paxos reassured its customers that they are continuing to work constructively with the OCC in order to obtain their national bank charter if possible.