### The New York Department of Financial Services (NYDFS) has opened an investigation against the stablecoin issuer Paxos; however, the precise nature and scope of the probe are not yet known.

Paxos was founded in 2012 and is headquartered in New York City. In addition to issuing USDP tokens, the company provides a range of other services, including a platform for trading and settling digital assets, as well as a platform for tokenizing assets, such as gold (PAXG). Paxos has received approval from the New York State Department of Financial Services (NYDFS) to operate as a trust company in 2015, making it one of the few regulated stablecoin issuers in the United States.



However, Paxos is now being investigated by the NYDFS for reasons unknown at the time of this writing and a NYDFS spokesperson said the agency could not comment on ongoing investigations.

  <blockquote className="twitter-tweet"><p lang="en" dir="ltr">JUST IN: 🇺🇸 New York Regulator launches investigation into <a href="https://twitter.com/search?q=%24BUSD&src=ctag&ref_src=twsrc%5Etfw">$BUSD</a> &amp; <a href="https://twitter.com/search?q=%24USDP&src=ctag&ref_src=twsrc%5Etfw">$USDP</a> stablecoin issuer Paxos, CoinDesk reports.</p>— Watcher.Guru (@WatcherGuru) <a href="https://twitter.com/WatcherGuru/status/1623789953619460096?ref_src=twsrc%5Etfw">February 9, 2023</a></blockquote>


Paxos has recently debunked speculations that the United States Office of the Comptroller of the Currency (OCC) may require the company to withdraw its application for a full banking charter.


  <blockquote className="twitter-tweet"><p lang="en" dir="ltr">To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter. Paxos continues to work constructively with the OCC.</p>— Paxos (@PaxosGlobal) <a href="https://twitter.com/PaxosGlobal/status/1623457250823258112?ref_src=twsrc%5Etfw">February 8, 2023</a></blockquote>
    



The investigations into stablecoin issuers was launched after TerraUSD lost a significant amount of value, raising concerns about the stability and reliability of other stablecoins in general. The NYDFS may be looking into whether stablecoin issuers, including Paxos, are in compliance with state and federal regulations and whether they are operating in a manner that protects consumers and ensures the stability of the financial system.



Paxos stated that the company is committed to ensuring the integrity and stability of its stablecoins and is fully compliant with all applicable regulations. Paxos has a strong track record of providing safe and secure custody of digital assets, and its stablecoins are fully collateralized.



Overall, the NYDFS investigation into stablecoin issuers emphasizes how crucial it is to make sure that they are completely collateralized and subject to the right regulation in order to safeguard customers and ensure the stability of the financial system.

The New York Department of Financial Services (NYDFS) has opened an investigation against the stablecoin issuer Paxos; however, the precise nature and scope of the probe are not yet known.

Sun Feb 12 2023

New York Regulator Launches Investigation Against Stablecoin Issuer Paxos

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Sun Feb 12 2023 New York Regulator Launches Investigation Against Stablecoin Issuer Paxos

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Sun Feb 12 2023

New York Regulator Launches Investigation Against Stablecoin Issuer Paxos