Right here is the Letter from the OCC Granting the Preliminary Financial institution Constitution to Paxos

Final week, it was reported that Paxos had acquired preliminary approval for a nationwide financial institution constitution for Paxos Nationwide Belief. The Workplace of the Comptroller of the Foreign money (OCC) acknowledged:

“the preliminary conditional approval is granted after an intensive assessment of the appliance, different supplies equipped by the applicant’s representatives, and all info out there to the OCC, together with commitments and representations made within the utility and throughout the utility course of. This approval is topic to the situations set out herein.”

The brand new financial institution is an uninsured nationwide financial institution whose operations could be restricted to these of a belief firm, offering a spread of companies together with custody companies for digital belongings, custody and administration of USD stablecoin reserves, fee, trade, and different affiliated companies.

It’s attention-grabbing to notice that the OCC shared that it acquired a single remark letter opposing the constitution for Paxos Nationwide Belief because it “[does] not align with OCC precedent with respect to fiduciary actions performed by nationwide belief banks.”

The OCC defended its resolution and denied the request to postpone a choice on Paxos. To cite the OCC:

“the Financial institution filed all required publicly out there info on a well timed foundation. The general public info required for this utility is similar as required to be in all licensing purposes, together with purposes that is perhaps submitted to the OCC by entities which might be members of the commerce teams that commented on this utility. In contemplating the Financial institution’s identification of public info and request for confidential remedy of particular info pursuant to 12 CFR 5.9(c), the OCC adopted its established insurance policies and procedures. Due to this fact, the OCC declines to require the Financial institution to offer completely different or further info in its public submitting than is required of different candidates below well-established OCC insurance policies and procedures. The OCC believes it is necessary for it to stick to its present insurance policies and procedures and to not have interaction in arbitrary and capricious actions by altering the foundations for one applicant as urged by the commenters.”

Briefly, the person or entity questioning the constitution resolution demanded a distinct regulatory course of for Paxos and the OCC denied the request.

The letter from the OCC to Paxos is out there beneath.