Paxos Pursues Federal Trust License, Expanding Regulatory Footprint from Abu Dhabi to New York

Paxos is making a significant move in its compliance strategy by filing a formal application with the U.S. Office of the Comptroller of the Currency (OCC) to transition its existing New York trust license into a federal trust charter. The application marks a strategic step toward securing broader regulatory recognition at the federal level.

If the OCC approves the conversion, Paxos would shift from state-level oversight by New York’s Department of Financial Services (NYDFS) to direct federal regulation. This transition would complement the company’s already-established multi-jurisdictional compliance infrastructure spanning multiple regions.

Building a Global Compliance Architecture

The filing comes as Paxos operates under a layered regulatory framework across key financial hubs. The firm maintains licenses and registrations in Europe through FIN-FSA oversight, holds authorization in Singapore under the Monetary Authority of Singapore (MAS), and operates within the Abu Dhabi Global Market (FSRA) framework. Adding federal U.S. oversight would create a more integrated regulatory profile.

The pursuit of a federal trust license suggests Paxos is positioning itself for deeper integration into the American financial system while maintaining its international regulatory compliance posture. A federal charter would potentially offer enhanced credibility and operational flexibility across U.S. jurisdictions, moving the company beyond localized New York State governance.

What This Means

The application underscores the importance crypto-focused financial infrastructure providers place on institutional-grade regulatory status. Should Paxos succeed in converting to federal oversight, it would represent progress in aligning digital asset services with traditional banking regulatory standards—a development with implications for how regulators view trust and custody services in the crypto sector.