This Paxos company profile covers the company's valuation, revenue, funding rounds, investors and history. Paxos works in crypto, with a focus on stablecoins and tokenization. It was founded in 2012 and is headquartered in New York, New York, United States. Its latest valuation on record is US$2.4 billion (April 2021). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.
Revenue
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| Apr 2021 | Series D | US$300M | US$2.4B | Oak HC/FT (lead); Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap | FinTech Global |
| Dec 2020 | Series C | US$142M | Not disclosed | Declaration Partners (lead) | Decrypt |
Paxos timeline
Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.
- 2012 — Paxos is founded in New York by Charles Cascarilla (CEO) and Rich Teo.
- Dec 2020 — Series C: US$142M. Investors: Declaration Partners (lead).
- Apr 2021 — Series D: US$300M, valuing the company at US$2.4B. Investors: Oak HC/FT (lead); Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap.
Investors
Overview
Paxos is a regulated blockchain infrastructure company that issues stablecoins and tokenized assets for itself and for partners. Its most visible work is behind the scenes: it issues PayPal USD (PYUSD) on behalf of PayPal, has issued its own Pax Dollar (USDP) and Pax Gold (PAXG), and provides crypto brokerage infrastructure that lets companies such as PayPal and others offer crypto buying and selling to their customers. Paxos's strategy is to act as a regulated partner for large financial and technology companies that want to use blockchain without becoming crypto firms themselves.
The company was founded in 2012 by Charles Cascarilla and Rich Teo, originally as itBit, a regulated crypto exchange. In April 2021 it raised a US$300 million Series D led by Oak HC/FT at a US$2.4 billion valuation, according to FinTech Global and Decrypt, bringing total funding to about US$500 million. That valuation dates from the 2021 crypto boom and has not been updated by a later priced round we can verify.
Products
- Stablecoin issuance: dollar-backed tokens issued by Paxos or on behalf of partners, with reserves held in cash and short-term US government instruments.
- PayPal USD: the stablecoin Paxos issues for PayPal, available to PayPal and Venmo users and on public blockchains.
- Pax Gold: a token representing ownership of physical gold held in vaults.
- Crypto brokerage: infrastructure that lets banks, fintechs and payment companies offer crypto trading.
- Tokenization: services to represent assets such as gold or securities as blockchain tokens.
- Settlement services: faster settlement of trades using blockchain technology.
Funding
Paxos raised a US$142 million Series C in December 2020 led by Declaration Partners, then a US$300 million Series D in April 2021 led by Oak HC/FT. Other participants included Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures and WestCap. The Series D valued Paxos at US$2.4 billion. CEO Charles Cascarilla said at the time that the money would help the company scale operations and add more large enterprise clients.
Business model
Stablecoin issuers earn interest on the reserves that back their tokens. When interest rates are high, this can be very profitable: a stablecoin with billions of dollars in circulation can generate substantial interest income from short-term government bills. When Paxos issues stablecoins on behalf of partners, it typically shares this income with the partner. Paxos also earns fees from brokerage services, tokenization and settlement. Its revenue therefore depends on the size of stablecoins in circulation, interest rates and the activity of its enterprise partners.
Competition
Paxos competes with Circle, issuer of USDC, and Tether, issuer of USDT, which are the two largest stablecoin issuers. It also competes with Anchorage Digital, which offers stablecoin infrastructure under a federal charter, and with banks launching their own tokens. Ripple has its own stablecoin, and infrastructure providers such as Fireblocks help companies build stablecoin products. Paxos differentiates by offering a regulated, white-label approach for large brands.
Paxos at a glance
Paxos is a New York blockchain infrastructure company founded in 2012 by Charles Cascarilla and Rich Teo. It issues stablecoins and tokenized gold, including PayPal USD on behalf of PayPal, and provides crypto brokerage infrastructure to enterprises. It raised a US$300 million Series D led by Oak HC/FT at a US$2.4 billion valuation in April 2021.
Timeline
- 2012: founded as itBit, a crypto exchange.
- 2015: receives a New York trust charter from the state's financial regulator.
- 2018–2019: launches Pax Dollar and Pax Gold.
- 2019: launches Binance USD in partnership with Binance.
- 2020: begins powering crypto trading for PayPal; raises US$142 million Series C.
- April 2021: raises US$300 million at US$2.4 billion.
- 2023: stops minting new Binance USD at the direction of New York regulators; launches PayPal USD.
- 2024–2026: expands stablecoin issuance internationally and for new partners.
How stablecoins work
A fiat-backed stablecoin is a token designed to stay worth one unit of a currency, typically one US dollar. When a customer gives the issuer a dollar, the issuer creates one token and holds the dollar in reserve. When the customer returns the token, the issuer destroys it and returns the dollar. To maintain trust, issuers hold reserves in safe, liquid assets, publish regular attestations and, under new regulations, must meet strict rules on reserve composition and disclosure. Stablecoins are used for trading, payments, cross-border transfers and as a dollar substitute in countries with unstable currencies.
The Binance USD episode
Paxos issued Binance USD (BUSD) in partnership with the Binance exchange. In 2023 the New York Department of Financial Services directed Paxos to stop minting new BUSD, and the SEC sent Paxos a notice suggesting it considered BUSD a security, which Paxos disputed. BUSD's circulation then declined as holders redeemed tokens. The episode showed both the strength of Paxos's regulated model, since redemptions were honoured, and the risk of depending on a single large partner. The SEC later said it would not pursue enforcement action.
White-label stablecoins
Many large companies want the benefits of stablecoins, such as fast settlement and programmable payments, but do not want to become regulated issuers themselves. Paxos offers a solution: it issues the stablecoin under its regulatory licences, manages reserves and compliance, and the partner brands and distributes it. PayPal USD is the most prominent example. As more banks, payment firms and consumer apps consider stablecoins, white-label issuance could become a significant market, though competition is intensifying.
Who funds Paxos
Paxos's investors include Oak HC/FT, which led its Series D, along with Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures and WestCap.
Valuation context
Paxos's US$2.4 billion valuation from 2021 predates the rapid growth of stablecoins in 2024–2026 and the passage of US stablecoin legislation. Circle's public listing provided a public market benchmark for stablecoin issuers. Our guides to the largest private crypto companies and crypto infrastructure companies compare Paxos with peers.
Risks
- Interest rate sensitivity: reserve income falls when interest rates fall.
- Partner concentration: large partners such as PayPal account for a significant share of activity.
- Competition: Circle, Tether, banks and other issuers compete fiercely.
- Regulation: stablecoin rules continue to develop in the US and abroad.
- Dated valuation: the last priced round dates from 2021.
Questions for enterprise partners
- Under which licences would your stablecoin be issued?
- How are reserves held, attested and protected?
- How is reserve income shared?
- Which blockchains will the token support?
What to watch
Watch PayPal USD circulation, new white-label stablecoin partners, international licences, tokenization projects and any new funding.
Takeaways
Enterprises can launch stablecoins without becoming issuers themselves. Founders can see how regulation can be a product. Investors should weigh stablecoin growth against interest rate and partner risk.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What does Paxos do?
Paxos is a crypto / stablecoins and tokenization company headquartered in New York, New York, United States. It was founded in 2012.
What is Paxos's valuation?
Paxos was valued at US$2.4 billion as of April 2021, according to FinTech Global. Private company valuations are set at funding rounds or share sales and can change significantly between them.
How much revenue does Paxos make?
Paxos is a private company and has not publicly disclosed its revenue. Figures on third-party sites are usually modelled estimates rather than numbers reported by the company.
What was Paxos's latest funding round?
The most recent financing we have verified is a series d in Apr 2021: US$300M, at a valuation of US$2.4B. Source: FinTech Global.
Who are Paxos's investors?
Investors named in public announcements include Oak HC/FT, Declaration Partners, PayPal Ventures, Mithril Capital, Senator Investment Group, Liberty City Ventures and WestCap.
Who founded Paxos?
Paxos was founded in 2012 by Charles Cascarilla (CEO) and Rich Teo.
Is Paxos a public company?
No. Paxos is a private company (private, venture backed), so its shares are not traded on a stock exchange and it isn't required to publish its financial results.
Where is Paxos headquartered?
Paxos is headquartered in New York, New York, United States.