What it is
Paxos dates itself to 2012 and names Charles Cascarilla as chief executive and co-founder. It runs itBit, a digital asset exchange, provides custody and brokerage infrastructure that other companies put their own name on, and issues dollar and gold tokens.
The corporate shape is worth setting out, because the brand and the regulated entity are not the same thing. The OCC's December 2025 approval letter records that Paxos Trust Company, LLC was a wholly owned subsidiary of Paxos Holdings, LLC, a Delaware limited liability company, itself wholly owned by Kabompo Holdings, Ltd., a private company incorporated in the Cayman Islands and the ultimate parent.
The charters
Paxos received a New York limited purpose trust charter in 2015, which it describes as the first such charter granted for digital assets. On 12 December 2025 the Office of the Comptroller of the Currency conditionally approved its application to convert that state trust company into a national trust bank operating as Paxos Trust Company, National Association, under charter number 25379. The bank takes no deposits and is not FDIC insured. Paxos said the same day that the conversion had been completed.
On the record
In February 2023 the New York Department of Financial Services directed Paxos to stop minting Binance USD. The department's own statement says it "has ordered Paxos to cease minting Paxos-issued BUSD as a result of several unresolved issues related to Paxos' oversight of its relationship with Binance in regard to Paxos-issued BUSD", and notes that it had authorised Paxos to issue BUSD on Ethereum but had never authorised Binance-Peg BUSD on any chain. Paxos announced on 13 February 2023 that it would cease issuing new BUSD from 21 February, working with the department, and that existing tokens stayed fully backed and redeemable.
Separately, the Securities and Exchange Commission sent Paxos a Wells notice in February 2023 over whether BUSD was an unregistered security. Paxos announced on 11 July 2024 that it had received a formal termination notice dated 9 July 2024, and that the SEC would not recommend enforcement action. No court or regulator has made a finding of fraud against the company.