Crypto Unicorn Paxos Raises $300 Million at a $2.4 Billion Valuation | CoinCodex
- Cryptocurrency and blockchain firm Paxos has raised $300 million in a Series D round led by Oak HC/FT
- Paxos provides a number of cryptocurrency-related services, and is also enabling PayPal's crypto functionality
- The company is now valued at $2.4 billion
Paxos raises $300 million at $2.4 billion valuation
Cryptocurrency and blockchain firm Paxos has raised $300 million at a $2.4 billion valuation in a Series D funding round. The Series D round was lep by Oak HC/FT, but also included other investors like PayPal Ventures and Mithril Capital.
The participation of PayPal Ventures is notable, because Paxos is already working with PayPal to enable the payments giant’s cryptocurrency buying and selling feature. Paxos CEO Charles Cascarilla told Forbes that Paxos is planning to add between 3 and 5 clients that are comparable in size with PayPal.
In an official Paxos press release, Cascarilla said that demand from enterprises has surpassed the company’s expectations:
"Demand for our enterprise solutions has accelerated much faster than we could have anticipated. It validates our approach to providing the most innovative and regulated enterprise solutions to replatform the financial system and create the digital economy of the future."
Paxos is a company with several products – it operates the itBit cryptocurrency exchange, issues the Paxos Standard and PAX Gold stablecoins, and provides crypto brokerage services for businesses like PayPal who want to offer cryptocurrency to their clients. Paxos also gives customers the option to launch their own branded stablecoins, with the most notable example being Binance’s Binance USD (BUSD). In addition, the company has also created a blockchain-powered solution for settling securities transactions.
Paxos says it will use the fresh capital to increase its headcount, scale its business and add more liquidity to its platform.
Paxos recently secured conditional approval from the the Office of the Comptroller of the Currency (OCC) to establish a national Trust Bank. In addition, Paxos also plans to seek approval from the U.S. Securities Exchange Commission (SEC) to operate a clearing agency.
Thanks to the boom in the cryptocurrency markets, major companies in this sector have been able to raise substantial amounts of capital in 2021. Blockchain.com raised $300 million at a $5.2 billion valuation in late March, while NYDIG raised a $200 million round in the same month.
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