Paxos Raises $300 Million for Crypto Infrastructure

Paxos Secures $300 Million in Series D Funding

Paxos has successfully completed a $300 million Series D funding round, with Oak HC/FT leading the investment. This new funding brings the company’s valuation to $2.4 billion.

The company specializes in developing infrastructure and providing white-label services. These services are designed for enterprise clients aiming to integrate cryptocurrency offerings for their customer base.

Strategic Partnerships and Key Investors

A significant partnership for Paxos is with PayPal, powering its cryptocurrency features. Since October 2020, PayPal customers have had the ability to buy, sell, and hold several cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Venmo, a subsidiary of PayPal, recently added similar cryptocurrency functionalities.

The current funding round saw participation from several investors, including Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures, and WestCap.

Paxos’ Diverse Product Suite

Paxos provides a range of products encompassing crypto trading and settlement, secure custody solutions, and token issuance capabilities.

The company primarily focuses on serving large enterprise clients, such as Revolut, Crédit Suisse, Société Générale, and StoneX.

Commitment to Regulatory Compliance

Maintaining a high level of compliance is a core principle for Paxos. The company intends to continue prioritizing adherence to regulations across various geographic locations and industry sectors.

Plans include launching Paxos National Trust Bank and seeking Clearing Agency registration with the SEC in the United States.

Furthermore, Paxos is applying for a Major Payment Institution license in Singapore. This regulatory focus is expected to attract more enterprise clients seeking secure cryptocurrency solutions.

Stablecoins and Digital Assets

Paxos has introduced its own stablecoin, Paxos Standard (PAX). Like other crypto assets such as BTC or ETH, PAX maintains a stable value.

Specifically, the value of one PAX is consistently pegged to one US dollar. Other well-known stablecoins include Tether and USDC.

The company also facilitates the issuance of branded stablecoins for other entities. For example, Binance collaborated with Paxos to launch BUSD, which is also valued at one USD.

PAX Gold is another notable offering from Paxos – a digital asset backed by physical gold. It presents an alternative to traditional gold ETFs, offering increased efficiency through the Ethereum blockchain.

itBit Exchange

Paxos operates its own cryptocurrency exchange, itBit. According to CoinMarketCap, itBit currently supports a limited number of trading pairs.

This exchange isn’t designed for direct consumer use, but rather serves as the foundation for Paxos’ other products and services.