The records of the U.S. The national banking license application submitted by stablecoin issuer Paxos in December 2020 expired at the end of March, according to data from the Office of the Comptroller of the Currency (OCC).
Paxos ongoing operations were unaffected by the application's expiration. In the near future, the corporation will decide the next course of action, which can involve reapplying for OCC supervision.
The announcement comes almost two years after the OCC granted preliminary conditional approval to the company's request to create Paxos National Trust, New York. The approval allowed Paxos to split its operations into two businesses, one of which is subject to national regulation and the other of which keeps its current regulatory structure.
The stablecoin issuer's plans to enter the banking industry have recently come under fire. Paxos was accused in February of being persuaded to withdraw its application for a license to operate a national trust bank by the OCC.
The OCC gave Paxos 18 months to implement the business plan. The company was given permission to hold both fiat currency and cryptocurrencies, offer stablecoin services across the nation, and run a national exchange as a result of the decision.
Additionally, federal and state authorities are prosecuting the corporation. In February, the Securities and Exchange Commission (SEC) notified the stablecoin issuer that it was looking into its BUSD joint stablecoin initiative with Binance.
The New York Department of Financial Services also ordered Paxos to stop issuing BUSD, and the company subsequently said that it has stopped minting the token.
In 32 days, Paxos redeemed more than $7.9 billion in BUSD, demonstrating the strength of its risk management strategy and commitment to client asset preservation. Its dedication to clients and strength in risk management are demonstrated by its ability to redeem more than half of the BUSD in circulation in just 32 days.