Payoneer applies for a banking license with OCC, plans to issue cross-border stablecoins

Global financial services company Payoneer has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish PAYO Digital Bank and obtain a national trust bank license. If approved, Payoneer will be able to issue a stablecoin compliant with the GENIUS Act—PAYO-USD—and offer regulated stablecoin custody, payments, and cross-border currency exchange services to its customers.

PAYO Digital Bank Application: License Purpose and Regulatory Framework

The core of Payoneer’s application is to obtain an OCC national trust bank license, granting three key regulatory permissions: managing reserves for PAYO-USD stablecoin independently, providing digital asset custody services, and allowing customers to freely exchange between PAYO-USD and local fiat currencies.

PAYO-USD will be directly embedded in Payoneer’s wallet as a currency for cross-border transactions, enabling customers to pay and receive using the stablecoin without traditional bank transfer channels.

One week prior to this application, Payoneer partnered with stablecoin infrastructure company Bridge to integrate stablecoin functionality into its cross-border payment platform, seen as a strategic technical move ahead of the formal application.

Key Design Points of PAYO-USD Stablecoin

Regulatory Compliance: Meets the standards of the U.S. GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act)

Use Cases: Embedded in Payoneer wallet, supporting payments, receipts, and two-way fiat currency exchanges

Target Customers: Nearly 2 million clients, mainly small and medium-sized enterprises engaged in cross-border trade

Reserves Management: Post-approval, PAYO Digital Bank will directly manage reserve assets and custody services

Payoneer CEO John Kaplan stated, “We believe stablecoins will play a significant role in the future of global trade.” The company also indicated that this move will help promote the use of the U.S. dollar in international trade and expand its influence in non-dollar payment channels.

The Fintech Banking License Race: Payoneer Is Not Alone

Payoneer’s application reflects broader industry trends. On Monday, OCC conditionally approved Crypto.com’s banking license application; previously, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos had completed licensing procedures by December last year. Coinbase has been awaiting OCC approval since October last year. Laser Platform submitted an application in January, and World Liberty Financial and Laser Digital are also potential applicants.

OCC Director Jonathan Gould stated in December that the entry of fintech companies into the federal banking system “benefits consumers, banks, and the overall economy,” providing more innovative products and services, while ensuring competition and diversity within the banking sector.

Frequently Asked Questions

What is the purpose of Payoneer applying for a U.S. banking license?

Payoneer aims to establish PAYO Digital Bank to obtain an OCC national trust bank license, primarily to be authorized to issue the stablecoin PAYO-USD compliant with the GENIUS Act, providing regulated stablecoin payment, custody, and exchange services to nearly 2 million cross-border trade clients.

How does PAYO-USD differ from existing mainstream stablecoins?

PAYO-USD is a dollar-pegged stablecoin planned by Payoneer, designed specifically for B2B cross-border trade settlements. It will be integrated directly into the Payoneer wallet, targeting small and medium-sized enterprise users, differing from retail and DeFi-oriented stablecoins like USDC and PYUSD.

Which companies have already obtained or are applying for U.S. banking licenses?

Companies that have completed licensing include Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. Those currently applying or under review include Payoneer, Laser Platform, World Liberty Financial, and Laser Digital.