Payoneer, a leading cross-border payments provider serving nearly two million small and medium-sized businesses worldwide, has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a US national trust bank focused on stablecoin services. The proposed entity, named PAYO Digital Bank, N.A., represents a significant step in integrating digital assets into mainstream global commerce, according to a company announcement made on Tuesday.
The application marks Payoneer’s strategic push to incorporate stablecoins into its existing global payments infrastructure. If approved by federal regulators, the new banking entity would provide regulated financial services specifically designed to support stablecoin-enabled transactions for businesses operating internationally.
Stablecoin Banking Services for Global Businesses
The proposed PAYO Digital Bank would operate under the GENIUS Act framework, a regulatory structure designed to govern digital asset banking activities. Through this framework, the bank would enable businesses to send and receive stablecoins, issue and manage a proprietary stablecoin called PAYO-USD, offer custodial wallet services, and facilitate the conversion of stablecoins into local currencies.
According to Payoneer, these services are expected to enhance USD adoption in global trade while accelerating payment processing times for small and medium-sized businesses. The initiative also aims to improve market access and simplify the complexity of cross-border financial operations that many international merchants currently face.
Leadership Vision for Digital Asset Integration
John Caplan, chief executive officer of Payoneer, emphasized the company’s forward-looking approach to payment innovation. “We believe stablecoins will play a meaningful role in the future of global trade,” Caplan stated in the announcement. He added that PAYO Digital Bank would provide customers with a trusted and regulated method to leverage emerging payment technologies as part of their international financial operations.
Rob Morgan, who has been designated to lead the proposed national trust bank, highlighted the practical benefits for global merchants. According to Morgan, the initiative would help businesses accelerate payment processing, add transparency to transactions, and improve access to international markets.
Recent Expansion in Cross-Border Payment Solutions
The banking application comes shortly after Payoneer embedded stablecoin functionality directly into its existing platform on February 18. This integration expanded digital asset options for customers conducting business across multiple countries and currencies, demonstrating the company’s commitment to cryptocurrency payment solutions.
Additionally, the fintech firm recently received regulatory approval from Indian authorities to provide cross-border payment services in that market. This approval, granted weeks before the stablecoin platform launch, reflects Payoneer’s broader strategy to expand its regulated service offerings in key international markets.
Implications for Cross-Border Commerce
The establishment of a national trust bank focused on stablecoin services could significantly impact how small and medium-sized businesses conduct international transactions. Traditional cross-border payments often involve multiple intermediaries, currency conversion fees, and processing delays that can extend settlement times by several days.
However, stablecoin-based payment systems promise near-instantaneous settlement and reduced transaction costs. By operating under federal banking regulations, PAYO Digital Bank would offer these benefits within a supervised framework that addresses concerns about consumer protection and financial stability.
The OCC has not announced a timeline for reviewing Payoneer’s application, and approval remains uncertain. Federal regulators continue to develop comprehensive frameworks for digital asset banking activities, which may influence the evaluation process and ultimate decision on the proposed national trust bank charter.