Key Takeaways:
- Paxos has laid off 65 employees (20% of its workforce) to focus on tokenization.
- Despite challenges and regulatory directives, Paxos maintains a robust financial position with around $500 million.
- Paxos is shifting its business strategy, phasing out settlement services in commodities and securities to concentrate on asset tokenization and stablecoins.
Paxos has laid off 65 employees, which is 20% of its workforce, to shift its focus toward tokenization.
CEO Charles Cascarilla reassured employees in an email that Paxos is financially strong.
Stablecoin issuer Paxos has cut its workforce by about 20%, or 65 people, sources say https://t.co/BOAtEgjBCt
— Bloomberg Crypto (@crypto) June 12, 2024
The layoffs aim to position the company for opportunities in tokenization and stablecoins.
Despite challenges, including a directive to stop minting Binance’s BUSD in early 2023, Paxos has a robust balance sheet with around $500 million.
PAXOS CUTS 20% OF WORKFORCE DESPITE $500M BALANCE SHEET
— BSCN (@BSCNews) June 12, 2024
– @Paxos has laid off 20% of its staff, totaling 65 employees, despite having more than $500 million on its balance sheet, according to an internal email from CEO Charles 'Chad' Cascarilla.
– CEO Cascarilla emphasized that… https://t.co/8kSk6mPxD9 pic.twitter.com/jSoQoF2lIf
In August 2023, Paxos partnered with PayPal for a new stablecoin venture.
EXCLUSIVE: Paxos cuts 20% of workforce despite having more than $500 million on balance sheet https://t.co/6zhOMLkGQ0
— The Block (@TheBlock__) June 12, 2024
The company plans to phase out its settlement services in commodities and securities to focus more on asset tokenization and stablecoins.
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