One thing that has changed over the years in trading digital assets is that investors and traders no longer need to hide it. Crypto has grown across the years as it has seen some degree of mainstream adoption worldwide. The industry has been able to immerse with certain financial powerhouses while some other Banks are trying to come up with a digital currency. In what would be described as a remarkable turn around for the industry, two digital assets exchange outfits, Paxos and Bitpay, has officially submitted applications to be listed as a bank in the United States of America.
Paxos wants to operate outside its present base of operations
According to a recently released statement by the Office of the Comptroller of the Currency in the United States, both digital asset exchange officially filed an application with the agency to be included in the national Bank trust charter. Paxos, which has its base of operations in New York, wants the license to be able to operate outside the city. Furthermore, Paxos has been granted several licenses in the past by the United States Office of the Comptroller of the Currency, with the new York trust charter a part of the licenses it obtained.
Also, Paxos is known for its brokerage and custody service across New York as well as other crypto-related services that they offer. Recently, PayPal agreed with the New York-based crypto exchange in its launch of its in-app buying and selling of digital assets.
Also read:According to a statement by Dan Burstein, the Chief compliance officer and general counsel of Paxos, if the crypto exchange is granted this license, then it would be officially recognized as the first custodian of crypto assets that is regulated at the state and federal level. Furthermore, the Chief compliance officer noted that they wanted a secure environment where a user will be able to buy various digital assets without being suspected.
Bitpay wants to establish a national trust bank
In a statement by Paxos, the crypto exchange said that if they are eventually granted this license, they would not only be able to serve those at the state level, they would also be able to serve everyone across the United States as well.
Bitpay, on the other hand, is a top-rated digital assets company across the United States of America that helps people make payments with the use of various digital assets. The crypto exchange published the reasons why it made a move for the national charter license in a recently released issue of the Atlanta Journal-Constitution.
According to the released details, the company wants to establish a new Bitpay National Trust Bank that would have its base of operations outside Alpharetta, Georgia. In its application, the bank said that it would issue about 120 million shares and receive nothing less than $12 million in capitalization fees.
With the applications already submitted by both parties, they would have to wait about 30 days which is the comment period before a decision is reached. Notably, once both of them are granted the license, they would be able to operate as a national bank, hence, bypassing various state laws.
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