Paxos Cuts 20% of Staff: Bloomberg

As a researcher with experience in the digital assets industry, I find Paxos’ decision to lay off 65 employees, or 20% of its staff, disconcerting. However, upon closer examination of the situation, it appears that this move is part of the company’s strategic shift towards tokenization and stablecoins.

As a researcher, I’ve come across recent reports indicating that Digital Assets firm Paxos has undergone a significant workforce reduction, letting go of approximately 65 team members. This equates to about 20% of their total staff.

In an email to all employees obtained by Bloomberg, CEO Charles Cascarilla explained that the upcoming layoffs would enable the company to focus effectively on the significant opportunities in tokenization and stablecoins. He added that the company boasts a robust financial standing, increasing its chances of thriving in this field.

According to disclosures, Paxos holds approximately $500 million in assets on its balance sheet, as reported by its various stablecoin offerings.

Last year, the New York Department of Financial Services compelled the company to cease issuing Binance‘s BUSD stablecoin in early 2023. At its height, this stablecoin boasted a market capitalization of $16 billion.

PayPal revealed in August 2023 that they had teamed up with Paxos to introduce a new stablecoin carrying the PayPal brand.

As a financial analyst, I can share that according to reports from Bloomberg, Paxos is planning to phase out its commodities and securities settlement services gradually. In contrast, the company is intending to focus more intensely on the areas of asset tokenization and stablecoins.