Payoneer becomes newest fintech to pursue US national banking charter
Following Crypto.com's conditional charter approval this week, multiple cryptocurrency firms including Coinbase, World Liberty Financial, and Laser Digital have submitted applications for US banking charters.
International payment services provider Payoneer has become the most recent among an expanding list of firms to submit an application for a national trust banking charter in the United States, a move that would potentially allow the company to launch a stablecoin and deliver a range of cryptocurrency-related services.
On Tuesday, Payoneer announced its filing with the Office of the Comptroller of the Currency to establish PAYO Digital Bank, just seven days following its collaboration with Bridge, a stablecoin infrastructure company, to integrate stablecoin functionality into its platform that primarily handles cross-border payment transactions.
According to Payoneer's statement, the company aims to launch a stablecoin that complies with the GENIUS Act, called PAYO-USD, which would function as the base currency within Payoneer wallets, while simultaneously enabling customers to send and receive stablecoin payments.
Should the OCC grant approval, Payoneer would gain the ability to oversee PAYO-USD reserve management, provide custody solutions, and facilitate customer conversions between stablecoins and their respective local currencies.
We believe stablecoins will play a meaningful role in the future of global trade
Payoneer CEO John Caplan
On Monday, Crypto.com received conditional charter approval from the OCC, joining other cryptocurrency firms Circle, Ripple, Fidelity Digital Assets, BitGo and Paxos that secured banking charters during December.
In January, World Liberty Financial, backed by the Trump family, filed its own application to broaden the reach of its USD1 stablecoin, though a final decision remains pending.
Additionally, Laser Platform, a crypto trading platform, filed its application during January, while Coinbase continues to wait for a determination on its application that was submitted back in October.
Stablecoins ideal for business cross-border transfers: Payoneer
According to Payoneer, receiving OCC approval would enable the company to provide its approximately two million customers, predominantly consisting of small and medium-sized enterprises, with a regulated stablecoin platform designed to streamline international trade operations.
This offering will help advance the use of the USD in global trade, reduce barriers for American companies competing internationally, and expand the dollar's presence across non-dollar payment corridors
Last December, Office of the Comptroller of the Currency head Jonathan Gould stated that welcoming new participants into the federal banking sector benefits "consumers, the banking industry and the economy [as] they provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system."