Payoneer files OCC application to launch PAYO Digital Bank for stablecoins

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Payoneer files OCC application

Structure of PAYO Digital Bank and functionality

If approved, PAYO Digital Bank would operate under federal OCC supervision. The bank would be authorized to send and receive payments in approved stablecoins. Payoneer also plans to issue its own stablecoin, PAYO-USD, in compliance with the GENIUS Act. The token would function as a liquidity storage asset within Payoneer wallets and as a settlement tool for corporate clients.

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The bank would manage the reserves backing PAYO-USD. Its infrastructure would include custodial services for digital assets tailored to business clients. Users would be able to convert stablecoins into local currencies across Payoneer’s operating markets, potentially reducing international settlement times from several days to minutes.

Payoneer CEO John Caplan said the company views stablecoins as a key component of the future of global trade.

“With PAYO Digital Bank, we aim to provide customers with a trusted and regulated way to use the latest payment innovations within their global financial operations,” he said.

Final approval remains subject to regulatory review, and the process may take several months.

Strategic implications for the market

The initiative reflects growing institutional interest in regulated digital assets. Following the passage of the GENIUS Act, several fintech and crypto firms have begun exploring national banking charters to operate under unified federal oversight instead of state-by-state licensing. The national trust structure is already used by some market participants for digital asset custody and related services.

Payoneer aims to strengthen the role of the U.S. dollar in cross-border trade and simplify settlement processes for American companies operating abroad. The application materials were prepared with the assistance of law firm Davis Polk & Wardwell LLP.

GENIUS Act, stablecoin market and cross-border payments

Industry estimates place total stablecoin circulation at nearly $300 billion in 2025, up more than 20% year over year. The majority of supply consists of U.S. dollar-denominated assets, including USDT issued by Tether and USDC issued by Circle, which dominate liquidity and international settlement markets. Unlike these broadly traded tokens, PAYO-USD is expected to function primarily as an infrastructure asset serving Payoneer’s SME client base rather than as a universal exchange-traded stablecoin.

Federal oversight under the GENIUS Act reduces legal uncertainty for issuers and financial platforms while strengthening reserve and transparency requirements. Integrating stablecoins into cross-border payments could cut clearing times and reduce intermediary fees by 1–3% compared to traditional bank transfers. For SMEs, this may translate into faster capital turnover and lower foreign exchange costs.

If approved, PAYO Digital Bank could become one of the largest examples of regulated stablecoin infrastructure deployment in the global SME segment and intensify competition in international payments.

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