By Hannah Lang (Reuters) -Paxos Trust Company, the cryptocurrency firm behind PayPal's stablecoin, said it is applying to create a national trust bank in the U.S., joining a raft of digital asset companies looking to gain a larger foothold in the traditional financial system.

The stablecoin issuer seeks to convert its New York Department of Financial Services license to federal oversight

Ripple and Circle also applied for the same license in July Paxos Trust Company, the cryptocurrency firm behind PayPal’s stablecoin, has applied to become a US National Trust bank, making it the latest digital asset provider to pursue this status.

Paxos seeks national bank charter to expand operations nationwide as regulatory clarity emerges with the GENIUS Act, following similar moves by Circle and Ripple.

Paxos Trust Company, the cryptocurrency firm behind PayPal’s stablecoin, has applied to become a national trust bank in the United States. This move places

Paxos has joined the list of firms seeking a national trust charter, with the stablecoin issuer following Circle and Ripple on that front.

Paxos seeks a U.S. bank license, joining Ripple and Circle in aiming for federal oversight to boost trust and crypto compliance.

Since its inception in 2015, Paxos has operated under the supervision of the NYDFS, becoming the first blockchain and tokenisation firm to receive a limited purpose trust charter

Paxos has applied to convert its New York Department of Financial Services bank charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency, the stablecoin issuer said on Monday.