Trustworthiness defines Paxos. We built our business on becoming a regulated, audited infrastructure provider that offers the highest levels of safety, protection and security for our clients. We spent years assembling this oversight and regulatory stack. We pursued this path because we believed this was the best approach to support your long-term business needs

Before you engage with digital assets, you should understand the landscape. Below are the trustworthiness credentials that Paxos has sought and achieved. These external validators support our position as the most trusted blockchain infrastructure provider in the world.

Multi-Jurisdictional Regulatory Framework

Paxos operates under the supervision of four leading prudential regulators across major financial centers:

Office of the Comptroller of the Currency (OCC) - United States

Paxos Trust Company operates as a national trust bank regulated by the OCC, the primary prudential regulator of national banks in the United States. This federal charter represents the highest level of bank oversight available in the US and allows Paxos to operate across all 50 states under a unified set of federally recognized banking laws. As a nationally chartered trust bank, Paxos must maintain rigorous capital requirements, implement comprehensive risk management frameworks and submit to regular examinations by the OCC.

Finnish Financial Supervisory Authority (FIN-FSA) - Europe

Paxos holds regulatory authorization from the FIN-FSA, providing oversight for our European operations. This regulatory status enables Paxos to serve clients across European markets while meeting strict prudential standards for digital asset services.

Monetary Authority of Singapore (MAS) - Asia Pacific

Paxos maintains a Major Payment Institution License from the Monetary Authority of Singapore under Singapore's Payment Services Act. This license provides regulatory oversight for our operations in Singapore, the gateway to Asian markets, and demonstrates our commitment to meeting the highest standards in the Asia Pacific region.

Financial Services Regulatory Authority (FSRA) - Abu Dhabi Global Market

Paxos holds regulatory authorization from the Financial Services Regulatory Authority in Abu Dhabi Global Market (ADGM). This authorization enables Paxos to serve clients in the Middle East and provides oversight under one of the region's most respected international financial centers.

Trusted Token Products

Paxos as a company operates under multi-jurisdictional regulation, and our products also receive individual regulatory oversight. Our regulated tokens include:

• PayPal USD (PYUSD) - Issuance is overseen by the OCC. Paxos issues the stablecoin for PayPal and ensures all reserves are backed 1:1 by U.S. dollar deposits and U.S. government securities.

• Global Dollar (USDG) - Issuance is overseen by the MAS and FIN-FSA in a multijurisdictional compliance approach. Paxos issues the stablecoin for the Global Dollar Network and ensures all reserves are backed 1:1 by U.S. dollar deposits and U.S. government securities.

• PAXG (Pax Gold) - Issuance is overseen by the OCC. A regulated, asset-backed token where each token represents one fine troy ounce of a London Good Delivery gold bar stored in professional vault facilities in London. PAXG provides investors with direct ownership of allocated physical gold.

SOC 1 Type 2 and SOC 2 Type 2 Verified

SOC stands for System and Organization Controls, a set of standards for operational excellence used across the financial services industry. 

The American Institute of Certified Public Accountants (AICPA) establishes these standards. They ensure institutions implement a base level of security, technology design and control to protect their customers.

Third-party independent auditors verified that our stablecoin, exchange and custody services meet both SOC 1 Type 2 and SOC 2 Type 2 standards. SOC 1 Type 2 examinations evaluate controls relevant to financial reporting, while SOC 2 Type 2 examinations assess controls related to security, availability, processing integrity, confidentiality and privacy. 

Paxos remains one of the few digital asset companies to achieve both designations.

Monthly Token Attestations

On a monthly basis, a third-party independent auditor attests that every token Paxos issues (including PYUSD, USDG and PAXG) maintains full collateralization by the supporting asset on a 1:1 basis. 

We publish those attestations monthly on our transparency page, ensuring constant visibility into our operations. This practice demonstrates our commitment to transparency and provides clients and token holders with verified proof that reserves always match or exceed tokens in circulation.

Top-Tier Bank Accounts Supporting Global Operations

Paxos built and maintains strong relationships with a diverse number of leading global banks and custodians, including State Street, Standard Chartered, Bank of New York, DBS, Dreyfus and more. The majority of companies that custody cryptocurrency sit outside of the traditional banking system, meaning they lack USD-based bank accounts. When trillions in global transactions settle in USD, this creates significant limitations.

Paxos maintains numerous active accounts with some of the biggest names in the banking industry. This allows us to take deposits across currencies and asset classes while eliminating single points of failure and concentration risk. We hold USD assets in FDIC-insured, bankruptcy remote accounts and debt instruments that the full faith and credit of the United States government expressly guarantees (e.g., U.S. Treasuries), ensuring client asset protection. 

We can easily support our clients' operations globally, which provides a distinct advantage as the economy becomes increasingly borderless.

Bankruptcy Remote Asset Protection

As a regulated trust company and national trust bank, Paxos holds all customer assets bankruptcy remote and separate from corporate assets. This structure ensures our clients know their cash, crypto and gold remain available and held in their name, regardless of any corporate events affecting Paxos itself.

Regular Examinations and Audits

As a multi-jurisdictionally regulated entity, we operate with regulators consistently reviewing our operations. 

The OCC, FIN-FSA, MAS and FSRA conduct regular examinations of our business. Additionally, independent third-party auditors routinely audit our financials and assess our controls across financial reporting, operations, compliance and information security. This ongoing scrutiny ensures we maintain the highest standards of operational integrity.

Full Messenger Access to SWIFT

Paxos secured its SWIFT account in 2016. This enables Paxos to access the largest messaging network for transactions between financial institutions. 

As more financial institutions enter crypto, SWIFT provides critical interoperability for seamless integration with traditional financial infrastructure.

Ongoing Regulatory Engagement

By continuously meeting and discussing with regulators at all levels, Paxos creates new opportunities and stays connected with shifts in the regulatory landscape. We engage with regulators in the US, Europe, Singapore and around the world. Our CEO and Co-Founder Charles Cascarilla has testified to Congress. The regulatory environment surrounding digital assets continues to evolve, and Paxos considers it both a business responsibility and a civic duty to help inform these conversations.

Trust as a Competitive Advantage

A company like Paxos that works across asset classes in highly regulated markets can always enhance its trustworthiness further. This represents a long-term investment for the company and serves as the foundation for our technology platform. 

When you choose Paxos, you partner with the most trusted and comprehensively regulated operator in digital asset infrastructure.

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This post is provided for informational purposes only and does not constitute legal advice. Readers should consult their own legal counsel regarding any legal matters or requirements relevant to their specific situation. Paxos makes no representations or warranties regarding the legal accuracy, completeness, or suitability of the information contained herein.