Paxos Becomes Crypto’s Latest Unicorn After Raising Another $300M

by Ellen Glover
April 29, 2021
NYC-based Paxos raises $300M Series D
Image: Shutterstock

Less than five months after announcing its $142 million Series C, Paxos, a rising star in the cryptocurrency space, has raised another $300 million. The Series D was led by Oak HC/FT, and brings the NYC-based company’s total valuation to $2.4 billion, making it one of the fastest growing fintech startups in the world, according to the company.

Founded in 2012, Paxos claims to be the first regulated blockchain startup, working with major names in fintech like PayPal and Revolut to create a more modern centralized financial system. The platform allows assets like money, commodities and cryptocurrency to be digitized and moved around the world instantaneously and safely.

2021 has been especially busy for Paxos. Over the last several months, the company helped launch crypto buying and selling services on Venmo thanks to its partnership with PayPal, launched its own stablecoin, and tokenized more than 100,000 ounces of investment-grade gold with PAX Gold, a digital offering that is backed by physical gold. The company also plans to launch a de novo national trust bank, which received conditional approval from the U.S. Department of the Treasury’s Office of the Comptroller of the Currency just this week.

“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,” Paxos co-founder and CEO Charles Cascarilla said in a statement.

Lately, the larger crypto space has been busy too. Just last month, crypto lender BlockFi raised a massive $350 million Series D, bringing its total valuation to $3 billion; and Coinbase, a competitor of Paxos’, made its public debut earlier this month.

However, Paxos’ focus on regulation, says Oak HC/FT co-founder and managing partner Patricia Kemp, is what sets it apart, positioning it as “an innovator in fintech” and a leader in the space going forward.

“Its solutions are designed to ensure trust with enterprise clients while enabling exciting new business opportunities,” Kemp said in a statement. “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.”

Paxos plans to further invest in its platform, grow its team and scale its operations. In addition to the Paxos National Trust Bank, the company also says it plans to support its application for a clearing agency registration with the SEC and pursue a major payment institution license in Singapore.

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