Founded in 2012 and supervised by NYDFS since 2015, Paxos sits in the issuer layer of the stablecoin stack, with reserves attested monthly and bankruptcy-remote customer balances held under trust law. In December 2025, Paxos received approval to convert its New York Department of Financial Services limited purpose trust charter to a national trust charter overseen by the U.S. Office of the Comptroller of the Currency. The broader stablecoin market has scaled to roughly $315 billion in stablecoin supply as of Q2 2026, with USDT and USDC holding the dominant share and a long tail of regulated issuers, including Paxos, occupying the institutional end of the spectrum.
Cyborg Score Rationale
Paxos holds a unique regulatory position as a federally chartered trust company with pioneering approvals dating back to 2015. The December 2025 OCC conversion elevates its standing and enables broader market access. However, as a private company with modest market share (ranked 530th in stablecoin circulation) and constrained by institutional-focused positioning, growth is dependent on institutional adoption and regulatory landscape.
Top Insights
Paxos has demonstrated superior credibility through its history of pioneering regulatory approvals for cryptocurrency and through long-standing partnerships with well-established institutions such as PayPal
Paxos offers NYDFS-regulated trust company status with 100% USD backing, third-party audits of reserves on an ongoing basis, and reserve accounts in FDIC insured banks
Paxos has a small market share, ranked 530th with 47.56 million circulation, though it addresses institutional-grade compliance rather than mass-market liquidity
OCC approval in December 2025 transitions Paxos to federal regulation, positioning it to compete more broadly in the trust services market
Named Competitors
USDC — Regulated USD stablecoin and payments infrastructure
USDT — Market-leading stablecoin with global liquidity
Bridge — Regulated stablecoin issuance and white-label infrastructure for enterprises
Ripple — Blockchain settlement infrastructure and digital asset issuance
Recent Developments
(December 2025) OCC approved Paxos' conversion from NYDFS limited purpose trust charter to national trust charter
(2025) Acquired Fordefi, a blockchain security and custody platform
(Q2 2026) Operates within $315 billion global stablecoin market dominated by USDT and USDC
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