Paxos secures $300 mn in Series D funding at $2.4 bn valuation

By Pavithra R

Paxos, a regulated financial institution building infrastructure to enable movement between physical and digital assets, has announced securing $300 mn Series D round of funding.

The investment round was led by Oak HC/FT, with participation from previous investors Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap and more. To date, the firm has raised more than $500 mn in funding and with a valuation of $2.4 bn.

“Demand for our enterprise solutions has accelerated much faster than we could have anticipated. It validates our approach to providing the most innovative and regulated enterprise solutions to replatform the financial system and create the digital economy of the future,” said Charles Cascarilla, CEO and Co-Founder of Paxos.

Paxos is planning to use the finance to l continue investing in the development of enterprise-grade infrastructure while deepening its commitment to regulation, reliability and security. The firm will accelerate growth by hiring new team members across all functions, scaling its operations, increasing platform capacity and investing in innovation. The firm also plans to add additional liquidity across its platform to enhance the customer experience and increase utilization of its tokens.

To continue the development of its robust, regulated platform, Paxos also plans to establish the Paxos National Trust Bank, support its application for a Clearing Agency registration with the Securities and Exchange Commission and pursue its Major Payment Institution license in Singapore.

In 2021, Paxos has achieved the following milestones:

• Supported the launch of crypto buying and selling services on Venmo through its partnership with PayPal;
• Received conditional approval for the first de novo Trust Bank charter for digital assets from the OCC;
• Completed same-day settlement of traded stocks for Instinet and Credit Suisse via the Paxos Settlement Service;
• Grew total stablecoin assets across three of the leading US dollar-backed stablecoins to nearly $10 bn; and
• Tokenized more than 100,000 oz of the highest quality investment-grade gold with PAX Gold.

“Since securing the first Trust charter for digital assets in 2015, Paxos has distinguished itself as an innovator in fintech by embracing regulation. Its solutions are designed to ensure trust with enterprise clients while enabling exciting new business opportunities. Few companies are approaching digital assets with such a clear vision as to how blockchain technology can revolutionize the transfer and creation of value. We’re excited to support Paxos at this pivotal time in the evolution of the global financial system,” said Patricia Kemp, Co-Founder and Managing Partner at Oak HC/FT.

Founded in 2012, Paxos is on a mission to modernize finance by mobilizing assets at the speed of the internet. The company aims in making it possible to move any assets anywhere, instantly and thereby democratize access to a new, global, frictionless economy.