Paxos Trust Company, the blockchain infrastructure firm powering PayPal’s PYUSD stablecoin, is making another push to become a US national trust bank. The company has refiled with the Office of the Comptroller of the Currency (OCC) to convert its New York limited-purpose trust charter into a nationwide federal charter. If approved, Paxos would gain the ability to custody digital assets and settle payments across the US under federal oversight, potentially increasing its appeal to institutional investors. Unlike traditional banks, a national trust bank cannot accept cash deposits or issue loans.

CEO Charles Cascarilla said OCC oversight would reinforce Paxos’ “commitment to the highest standards of safety and transparency.” This marks a revival of its earlier effort, which began in 2020 and won conditional OCC approval in April 2021. That approval expired in March 2023 after the company failed to open the bank within the required 18 months.

The lapse came during intense regulatory scrutiny. In February 2023, the New York Department of Financial Services (NYDFS) ordered Paxos to halt issuance of Binance USD, citing compliance concerns, effectively ending its partnership with Binance. Just last week, Paxos agreed to a $48.5 million settlement with NYDFS over alleged anti-money laundering lapses, paying $26.5 million in fines and committing $22 million to strengthen its compliance systems.

Paxos’ renewed bid comes shortly after the GENIUS Act established the first federal framework for stablecoin issuers. The move also follows similar charter pursuits by other major players like Ripple and Circle, signaling an industry-wide race to secure regulatory legitimacy in a tightening US oversight environment.

This latest application could determine whether Paxos cements its position as a trusted, federally regulated leader in the rapidly evolving stablecoin market.