Global financial services company Payoneer is the latest in a growing number of companies to apply for national trust banking status in the United States, which could allow it to issue stablecoins and offer a variety of crypto services.
Payoneer announced on Tuesday that it has applied to the Office of the Comptroller of the Currency to form a PAYO digital bank, a week after partnering with stablecoin infrastructure company Bridge to add stablecoin functionality to the platform, which focuses primarily on cross-border transactions.
In addition to allowing customers to pay and receive with stablecoins, Payoneer said it aims to issue a GENIUS-compliant stablecoin, PAYO-USD, which will serve as the holding currency for Payoneer wallets.
With OCC approval, Payoneer will manage PAYO-USD reserves, provide custodian services, and allow customers to convert stablecoins into local currencies.
“We believe stablecoins will play an important role in the future of global trade,” said John Caplan, CEO of Payoneer.
The OCC conditionally approved Crypto.com’s charter on Monday, adding to the banking licenses won by cryptocurrency companies Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos in December.
Related: Framework Ventures hits $500 million stablecoin mortgage financing deal
The Trump family’s World Liberty Financial also applied in January to expand the use of its USD1 stablecoin, but is still awaiting a decision.
Cryptocurrency trading platform Laser Platform also filed an application in January, and Coinbase has been waiting for a decision on its application since October.
The best stablecoin for cross-border money transfers for your business: Payoneer
Payoneer said the OCC’s approval will enable it to offer a regulated stablecoin solution to simplify cross-border transactions to its approximately 2 million customers, the majority of whom are small and medium-sized businesses.
“This proposal would help promote the use of the U.S. dollar in global trade, reduce barriers for U.S. businesses competing internationally, and expand the dollar’s presence across non-dollar payment channels,” the report said.
Comptroller of the Currency Jonathan Gould said in December that new entry into the federal banking sector is “good for consumers, the banking industry, and the economy because it provides consumers with access to new products, services, and sources of credit, and ensures a dynamic, competitive, and diverse banking system.”
Magazine: Did a Hong Kong fund destroy Bitcoin? Bithumb’s “phantom” BTC: Asia Express
