Paxos, a blockchain infrastructure platform, has received an approval of the application to charter Paxos National Trust, New York, the Office of the Comptroller of the Currency (OCC) announced. However, the OCC granted preliminary conditional approval only.
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The regulator emphasizes that final approval and authorization for the bank to open will only be granted after "all pre-opening requirements are met." Paxos General Counsel & CCO, Daniel Burstein, said that the company became the first to maintain its current regulatory structure and also seek a new federal charter.
"This makes Paxos the first crypto-native company to receive preliminary conditional approval for a de novo national Trust Bank charter," he added.
Burstein also noted the OCC's approval indicates that Paxos' initial plans "meet their standards." Now, the company will execute on those plans to create the National Trust Bank.
However, Paxos is not the first cryptocurrency company to receive conditional approval from the OCC. As iHodl previously reported, Anchorage, a cryptocurrency custodian, also received an approval by the OCC to become Anchorage Digital Bank, National Association.
In January 2020, the company launched a brokerage service, dubbed Anchorage Trading, which allows institutional investors to store their cryptocurrencies with Anchorage so that they can trade directly from its platform.
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