Stockbroker and stablecoin issuer Paxos said it had not been denied a national banking charter from the Office of the Comptroller of the Currency (OCC).

On February 7, rumors surfaced that the OCC had denied Paxos its bank authorization, stemming from the preliminary approval Paxos obtained from the OCC, which expired if Paxos did not open its bank authorization within 18 months.

OCC Preliminary Approval 2021

The OCC granted preliminary approval in April 2021, and it has now been 22 months since that date, putting the opening four months behind schedule.

Paxos categorically denied all the rumors in its February 8 statement. cheep. He said the OCC has not rejected his charter request, nor has the regulator asked him to withdraw his request.

“Paxos continues to work constructively with the OCC.”

If Paxos wins the charter, it will operate as a federally regulated digital asset bank alongside competitors Anchorage and Protego. You will be able to operate in the US without obtaining licenses in individual states that would otherwise require one.

NYDFS investigation rumors surface

Separate rumors surfaced on February 9 suggesting that Paxos is facing an investigation by the New York Department of Financial Services (NYDFS).

Those rumors did not reveal the reasons for the alleged investigation, and neither party has publicly confirmed any investigation.

Paxos is responsible for the Binance USD (BUSD) and Pax Dollar (USDP) stablecoins. It also operates a cryptocurrency brokerage and powers PayPal’s cryptocurrency trading capabilities.

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