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PayPal crypto partner Paxos raises $300M


cointelegraph.com 29 April 2021 12:41, UTC
Reading time: ~2 m

Paxos, a major cryptocurrency company and PayPal’s crypto collaborator, has completed a massive fundraise shortly after receiving preliminary approval to form a national trust bank.

On Thursday the firm announced a new $300 million Series D funding round bringing Paxos’ valuation to $2.4 billion. The new funding round included previous Paxos investors including PayPal Ventures, Declaration Partners, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap and others.

The newly raised funds will help Paxos continue investing in the development of enterprise-grade infrastructure and further grow its commitment to regulation, security and compliance as well as expand operations, the firm said.

Following preliminary approval granted by the United States Office of the Comptroller of the Currency last week, Paxos also plans to establish the Paxos National Trust Bank in the near future. The company also applied for a clearing agency registration with the Securities and Exchange Commission and is pursuing a Major Payment Institution licence in Singapore.

Paxos co-founder and CEO Charles Cascarilla said that demand for the company’s enterprise solutions has accelerated much faster than the firm had anticipated. 

Founded back in 2012, Paxos emerged as a major industry player allowing users to tokenize, custody, trade and settle digital assets. Paxos has issued stablecoins like U.S. dollar-pegged Paxos Standard and gold-backed PAX Gold.

Last year, PayPal announced a partnership with Paxos to allow users buy, sell and hold cryptocurrencies like Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Paxos also assisted PayPal-owned payments firm Venmo in launching cryptocurrency trading last week.

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