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Paxos Raises $300 Million at $2.4 Billion Valuation - Bitcoin World


bitcoinworld.co.in 30 April 2021 07:20, UTC
Reading time: ~2 m

The leading crypto company, and PayPal’s crypto partner, Paxos, has concluded a massive fundraising round after gaining a preliminary approach to build 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 involved earlier Paxos investors. It includes PayPal Ventures, Declaration Partners, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap and others.

The freshly raised funds will help Paxos invest in developing enterprise-grade infrastructure and developing its commitment to security, regulation, and compliance and expand operations. After preliminary approval awarded by the U.S. OCC (Office of the Comptroller of the Currency) last week, Paxos also intends to build the Paxos National Trust Bank shortly. The company also appealed for a clearing agency registration with the U.S. SEC (Securities and Exchange Commission) and is seeking a Major Payment Institution license in Singapore. Moreover, it also received the go-ahead to clear stocks on the blockchain through a no-action relief from the agency. 

Paxos Became the Third Crypto Firm to Receive Trust License From U.S. OCC

The CEO and co-founder of Paxos, Charles Cascarilla, elucidated that demand for the company’s enterprise solutions have stimulated much quicker than the firm had anticipated. Established back in 2012, Paxos developed as a significant industry player enabling 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. Paxos believes its regulatory approach to the crypto market will work as a differentiator for would-be customers. Admittedly, Paxos became the third crypto firm to gain a trust license from the U.S. OCC (Office of the Comptroller of the Currency) last week. 

Moreover, PayPal became one of the company’s flagship consumers last year when it chose to allow users to purchase and sell Bitcoin and other cryptos on its platform. It enables users to buy, sell and hold cryptocurrencies like Bitcoin, Ether, Bitcoin Cash and Litecoin (LTC). Paxos also supported PayPal-owned payments firm Venmo in introducing cryptocurrency trading last week. Instead of developing its crypto infrastructure, PayPal chose to have Paxos handle its backed operations. 

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