Paxos Cuts 20% of Staff: Reports

Digital assets company Paxos has laid off 65 people, or 20% of its staff, according to a report from Bloomberg, which in turn cited an earlier article by The Block.

In an all-hands email obtained by Bloomberg, its CEO Charles Cascarilla said that the layoffs “allows us to best execute on the massive opportunity ahead in tokenization and stablecoin" and the company is in a "very strong financial position to succeed"

Paxos has more than $500 million of corporate assets on its balance sheet, which is different from its customer assets, according to a company spokesperson.

However, the company took a hit last year when the New York Department of Financial Services forced it to stop minting Binance's BUSD in early 2023, which had a market cap of $16 billion at its peak.

In August 2023, PayPal announced that Paxos was its partner in launching a PayPal-branded stablecoin.

Paxos intends to gradually discontinue its settlement services in commodities and securities. Instead, it will concentrate more on asset tokenization and stablecoins, Bloomberg reported.

UPDATE (June 13, 13:05 UTC): Clarifies that the news was reported by another crypto media outlet, The Block, prior to the publication of Bloomberg's story.

CORRECTION (June 13, 17:30 UTC): Clarifies in the third paragraph that Paxos holds more than $500 million of corporate assets in its balance sheet.