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

Stablecoin issuer Paxos has joined fellow crypto firms Ripple and Circle in applying for a National Trust Charter to gain federal oversight.

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

The crypto firm’s renewed application for a national trust charter comes shortly after being fined by the NYDFS, connected to its past relationship with Binance.

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

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.