According to a Bloomberg story, digital assets provider Paxos has laid off 65 employees, or 20% of its workforce. Its CEO, Charles Cascarilla, stated in an all-hands email that Bloomberg was able to receive that the company is in a “very strong financial position to succeed” and that the layoffs “allows us to best execute on the massive opportunity ahead in tokenization and stablecoin.” Disclosures from its numerous stablecoins indicate that Paxos has a balance sheet valued at approximately $500 million.
The business suffered last year, though, when the New York Department of Financial Services ordered it to cease minting Binance’s BUSD in early 2023. At that time, the cryptocurrency had a $16 billion market capitalization.
PayPal declared in August 2023 that Paxos would be collaborating with it to introduce a stablecoin with the PayPal name. Paxos plans to progressively stop offering its securities and commodities settlement services. Bloomberg said that instead, it will focus more on stablecoins and asset tokenization.