Preliminary conditional approval for an application to charter Paxos National Trust, New York, which will be uninsured and focus on cryptocurrency services, was announced Friday by the Office of the Comptroller of the Currency (OCC).
The OCC said that at chartering, the trust bank will perform a subset of the activities currently conducted by its affiliate, Paxos Trust Company, as authorized by New York state law for a trust company and will perform activities in a fiduciary capacity.
Paxos Trust Company, the agency said, will provide services associated with digital assets that are permissible for a national bank, including custody services for digital assets; custody and management of U.S. dollar stablecoin reserves; payment, exchange, and other agent services; other cryptocurrency services, such as trading services and enabling partners to buy and sell cryptocurrency; and “know your customer” as a service, which includes customer identification, sanctions screening, enhanced due diligence, customer risk rating, and other related services.
The OCC said these activities are currently being conducted by Paxos Trust Company, LLC, a New York-chartered limited liability trust company. The new trust bank and Paxos Trust Company will be affiliates and direct wholly owned subsidiaries of Kabompo Holdings Ltd., Grand Cayman, Cayman Islands.