• Paxos denied rumors of bank charter rejection from the Office of the Comptroller of the Currency (OCC).
• OCC granted preliminary approval in 2021 and has 22 months since that date.
• Separate rumors emerged about a potential investigation by the New York Department of Financial Services (NYDFS), but neither party has confirmed it.
Paxos Refutes Bank Charter Rejection Rumors
Stablecoin issuer Paxos said that it has not been denied a national bank charter from the Office of the Comptroller of the Currency (OCC).
Office Of The Comptroller Of The Currency Preliminary Approval
The OCC granted preliminary approval in April 2021, and it has now been 22 months since that date, making the opening four months overdue.
Denial Of Rumors
Paxos categorically denied all rumors in its Feb. 8 tweet. It said that the OCC has not rejected its application for the charter, nor has the regulator asked it to withdraw its application. If Paxos obtains 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 U.S. without obtaining licenses in individual states that would otherwise require one.
New York Department Of Financial Services Investigation
Separate rumors emerged on Feb. 9 suggesting that Paxos faces a probe from the New York Department of Financial Services (NYDFS). Those rumors did not disclose the reasons for the supposed investigation and neither party has publicly confirmed any probe.
Crypto Brokerage & Stablecoins
Paxos is responsible for stablecoins Binance USD (BUSD) and Pax Dollar (USDP). It also operates a crypto brokerage and powers PayPal’s crypto trading capabilities