Paxos is an interesting company that has its roots in the fintech industry. It is a regulated financial institution that serves businesses with a variety of tech products that help them build their infrastructure to accommodate the changes taking place in the modern financial industry. The main focus of Paxos is to enable businesses to get in on the new cryptocurrency trend that is becoming pervasive in finance today. Many are getting on board with the new cryptocurrency movement. It provides options for allowing smooth and seamless movement between physical and digital assets. Whether you're a business owner interested in cryptocurrency transactions or an investor seeking to diversify your portfolio, here are 20 interesting facts about Paxos, you probably didn't know.
1. It's not yet listed on the stock market
According to Crunchbase, Paxos is a privately held company that is owned by its founders. The business has not yet filed for an IPO to enter the public trading environment. So far, there has been no news about Paxos' plans to do so. It is likely to remain a privately held firm for the foreseeable future. Paxos has depended on private venture capital funding for its financial backing for operations and expansion.
2. Paxos is a late-stage venture capital-backed company
Paxos has participated in five rounds of venture capital fundraising. The most recent was a Series D round of funding led by Oak HC/FT, joined by 7 other investors. It closed on April 29, 2021, raising a total of $300 million in funding. Before that, a Series C round closed on December 16, 2020, raising $142 million. A Series B round closed May 31, 2018, raising $65 million with a Round A fund closing May 8, 2015, raising $25 million. The first funding was a Seed round that closed on November 11, 2013, bringing in $3.3 million for startup and operations.
3. Paxos is backed by 21 investors
Paxos has not had any trouble finding financial resources to back its operations and expansion. It has secured the confidence of a total of 21 investors with 4 lead investors. These include PayPal Ventures, Liberty City Ventures, Senator Investment Group, Mithril Capital Management Group, Oak HC/FT, Declaration Partners, WestCap, RRE Ventures, Alua Capital, and several others. So far, Paxos has raised $535.3 million in venture capital funding.
4. Paxos is led by a small executive team
Paxos is a successful and thriving fintech and regulated financial institution. It is led by a small executive team that consists of just 11 members. This includes its founder and chief executive officer Charles Cascarilla, Co-founder and CEO Asia Richmond Teo, The chief operations officer and interim head of product Andrew Chang, General Counsel, and CCO Daniel Burstein, senior product manager Jamar Parris, senior vice president and head of engineering Corey Wendling, and strategic initiatives head Rob Thorpe.
5. Paxos has a five-member board of directors
There are currently five members of the Paxos board of directors. These are advisors that help contribute their advice for strategic planning for the company. Robert Herz is a member who sits on 4 assorted boards bringing experience and financial knowledge to the team. Jim Manzi is a non-executive chairman of the board for Interwise. Senator Bill Bradley is a board member and managing director for Allen & Company and Raydiance. Duncan L. Niederauer sits on 5 other boards of directors, and Sheila Bair is the fourth board member and independent director of Avant.
6. Paxos is run by a complex array of technologies
The overhead of operating Paxos is high, however, the company has still managed to mitigate the costs to become profitable. There are currently 34 active technologies used by Paxos. These are distributed through 27 technology products. A few of them include HTML5, jQuery, Google Analytics, Mobile Non-Scaleable Content, IPv6, YouTube, and many others. It takes multiple complicated technologies running in the background to deliver seamless end-user products.
7. Paxos is a unicorn company
According to Techcrunch, Paxos has achieved a major milestone in its growth and development. It has risen to the status of mega-giant in the fintech industry. It has a current valuation of $2.4 billion. This is more than two times the $1 billion amount required to qualify for unicorn status. It now joins the elite group of companies that have achieved this remarkable status.
8. Paxos is helping to open up the financial industry
The services provided by Paxos are helping to open up the financial industry to cryptocurrency. This is one of the latest trends in digital assets. It offers clients with businesses of all sizes to offer cryptocurrency products to their customers through Paxos' white label services for enterprise clients and infrastructure building technologies and services. Paxos is helping others to move into the modern age of digital asset management and much more. It's making more financial and currency platforms available to a large array of businesses.
9. Paxos has a partnership with PayPal
PayPal is one of the largest and most well-known payment processors in the world today. In October of 2020, Paxos developed a partnership with PayPal to provide the service with cryptocurrency features. This has enabled PayPal customers to have access to buying, selling, or holding a few of the more popular crypto assets. This includes Litecoin, Bitcoin Cash, Bitcoin, and Ethereum. PayPal's subsidiary company Venmo recently added a few of these cryptocurrency features as well.
10. Paxos offers versatile product offerings
Paxos is a versatile financial institution that offers a variety of different products for its clients. Although it serves companies of various sizes, the main focus is on big enterprise clients, including StoneX, Societe Generale, Credit Suisse, Revolut, and others. It offers crypto trading and settlement, custody, as well as the ability for companies to issue tokens.
11. Paxos helps clients with regulations compliance
Another benefit of Paxos'products and services is the assistance it provides for adherence to regulation. The company is compliant and attempts to maintain compliance with all regulations, which vary from one geography and vertical to another. Because Paxos serves clients across a wide range of different industries, the regulations tend to differ from one to another. An example of these efforts to remain compliant in its application for a Major Payment Institution license in Singapore. It also plans to apply with the SEC in the United States for a Clearing Agency registration. Part of Paxos' strategic planning involves fostering partnerships with clients who are interested in safe cryptocurrency opportunities that are covered under Paxos' regulation edge.
12. Paxos offers a stable coin
Paxos has launched its crypto assets. It recently launched Paxos Standard (PAX), which is a stable coin, developed and owned by Paxos. It's similar to ETH and BTC crypto-assets. The value of Paxos Standard is indexed on the United States Dollar. A PAX stable coin is worth one US Dollar.
13. Paxos helps companies issue their stable coin
This company has developed its stable coin. The technology used to accomplish this feat is also a service that it offers its clients. Companies that wish to issue their own branded stable coins may do so on their platforms with the help of Paxos. This is just one of the ways that Paxos is helping to transform the world of finance and open it up to other currency types. In addition to this, Paxos also offers a digital asset that is backed by physical gold. It's called PAX Gold. Pax Gold is relevant to Ethereum blockchain, where it lives, and it provides investors with an alternative to gold ETFs. This is another way that Paxos is helping to provide the world with currency and investment alternatives that exist within the digital environment.
14. Paxos established its cryptocurrency exchange
Paxos is a remarkably versatile financial institution that has the opportunity to bring transformative innovations to the digital marketplace. The company established itBit, which is Paxos' cryptocurrency exchange. Yes, you're reading this and processing it correctly. It's like a miniature version of the NASDAQ or New York Stock Exchange. Although there are only a few trading pairs, it is nonetheless a trading platform, although it is not intended to be a consumer-facing exchange at this point. It powers other products of Paxos.
15. Paxos is building a new future for assets
According to LinkedIn, part of the mission of Paxos is to build a new future within the financial arena where all assets including securities, money, and commodities will become digitized. This will allow for instantaneous movement around the clock and 7 days a week. One can immediately see how this is an improvement over the current stock exchange that keeps regular weekday hours and closes on the weekends.
16. Paxos is an expert in blockchain
Paxos is an expert advisor for blockchain operations. It is the first company in history to be a regulated financial institution with blockchain expertise. The company occupies a unique position in the industry with the ability to mobilize and custody assets digitally. this makes Paxos somewhat of a pioneer in this emerging and also trending niche. this means settlement risk will simply cease to exist and the trillions of trapped capital will become functional in a frictionless global economy. This is a lofty vision that is likely something that Paxos will help to bring into reality. Paxo offers a Standard token and confirmation service for precious metals currently. It's an innovative expert in all things blockchain and cryptocurrency.
17. Paxos is currently expanding
Paxos has openings for 11 new positions within its New York-based operation. After reading through a few of the job descriptions, it's apparent that Paxos is expanding its operation. The company explains that it is adding new positions to its current workforce. The company acknowledges that it is going through a phase of rapid expansion. Before filling these newly listed positions, Paxos has a workforce of 155 employees.
18. Paxos is trying to fix a broken system
The CEO of Paxos is Charles Cascarilla. He believes that the current financial system is broken and that it needs to be fixed. He believes that the future of the financial industry lies in cryptocurrency. He joined forces with Robinhood CEO and founder Vlad Tenev in a video chat that is available for viewing. The two openly discuss the future of crypto as two pioneers in this niche of finance. They share interesting and similar points of view that help viewers better understand how the current financial system is failing, and how crypto could fix the problems. Cascarilla and Tenev hope to educate consumers and business owners about the benefits and applications of crypto.
19. Paxos offers a turnkey solution
According to the official Paxos website, Paxos offers a turnkey solution that provides licensing and compliance solutions for their clients who launched crypto products on their sites. They're licensed to operate in all fifty states in America. Transactions are monitored with AML screening that meets all current regulatory requirements with 1099 tax reporting. It offers American support, plus services in a variety of international markets with Onboarding APIs to KYC end users.
20. Paxos offers financial alternatives
Companies that are interested in getting started with digital currencies or alternatives to traditional physical investments can find the help and resources they need at Paxos. It supports Ethereum, Bitcoin, Bitcoin Cash, Litecoin, and Pax Gold. They support these currencies as investments for trading pairs for trading applications. Although the cryptocurrency market is in the process of emerging as an infant technology and asset, it is a trending alternative that more investors are eyeing and becoming involved in. This new wave of digital finance may become the new standard in time. Paxos is a pioneer in this niche and a leader in the industry at this time. It is a company to keep your eye on as we move forward into an uncertain future where anything is possible.
Written by Allen Lee
Read more posts by Allen Lee