Paxos, a brokerage and stablecoin issuer, has rejected claims that it has been denied a national bank charter by the Office of the Comptroller of the Currency (OCC).
The rumors had emerged on February 7, and arose from the preliminary approval that Paxos received from the OCC in April 2021, which was due to expire if Paxos did not open its chartered bank within 18 months.
However, Paxos categorically denied all rumors in a tweet on Feb 8, stating that the OCC had not rejected its application for the charter, nor had the regulator asked it to withdraw its application. Paxos also stated that it continues to work constructively with the OCC.
If Paxos were to obtain the charter, it would be able to operate as a federally-regulated digital asset bank, alongside competitors Anchorage and Protego, and operate across the U.S. without obtaining licenses in individual states.
In addition to the rumors of the OCC rejection, separate rumors also emerged on February 9, suggesting that Paxos was facing a probe from the New York Department of Financial Services (NYDFS).
However, neither party has confirmed the investigation, and the reasons behind it have not been disclosed.
Paxos is responsible for the stablecoins Binance USD (BUSD) and Pax Dollar (USDP), and it also operates a cryptocurrency brokerage and powers PayPal’s crypto trading capabilities.