According to recent reports, Paxos has had its national banking license application terminated by the US Comptroller’s Office.
Paxos, which issues the Pax Dollar (USDP) stablecoin, had delayed compliance with the regulator’s requirements for an earlier application for a banking license and approval of the charter of the bank Paxos National, resulting in the termination of the approval of the Paxos application.
While the application had been approved in a preliminary format back in April 2021, the companies were given 18 months to complete the necessary formalities for the final stage of licensing.
Despite the termination of its application, Paxos commented that its existing business would not be affected and that it could reapply at any time.
In a separate development, the New York State Department of Financial Services had requested Paxos Trust to cease supporting and issuing Binance USD (BUSD) in February of this year.