|Headquarters||New York City|
|Key People||Charles Cascarilla, Founder and CEO; Andrew Chang, COO; Richmond Teo, CEO of Asia|
|Products||Paxos Standard, a stablecoin; custody services|
Also see John Lothian News's 2017 interview with Charles Cascarilla, the founder of Paxos, which is available here.
Paxos Trust Company, the successor to itBit Trust Company, was licensed on September 10, 2018 by the New York State Department of Financial Services (NYDFS) to issue a stablecoin - that is, a virtual currency tied to the value of a fiat currency. It is called Paxos Standard (PAX) and is tradable on Paxos's cryptocurrency exchange, itBit, as well as on 75 other cryptocurrency exchanges. In mid March 2019, PAX was the 50th largest cryptocurrency by market capitalization according to CoinMarketCap, an online industry data reporting service.
One PAX should have the value of one U.S. dollar, according to the Paxos website.
The company suffered headaches in late 2018 over its competitor, Gemini, when some traders took advantage of an arbitrage opportunity between Gemini dollars (GUSD) and Paxos' stable coin, PAX. Traders bought GUSD at a 2 percent discount and exchanged vast sums of it for PAX, and then opened accounts under relatives' names to bypass the $10k transaction limit on Huobi, another exchange. In order to redeem those coins for US dollars they had to go through the original issuer - Paxos. The result was huge numbers of users wanting to cash out their new PAX coins.
In a March 11, 2019, interview with Fortune's The Ledger Cascarilla said that Paxos was planning on issuing a stablecoin backed by gold "definitely this year." He noted that Paxos's status as a trust company allowed it access to the banking system which would provide transparency and legal certainty around their holding gold. Cascarilla also told The Ledger that Paxos had applied to the U.S. Securities and Exchange Commission for permission to tokenize securities. He did not provide a launch date for that product..
In December 2016, Paxos and Euroclear announced that they had completed a test of 600 gold bullion trades on Bankchain, a blockchain-based post-trade platform with a group of banks that included, among others, Scotiabank, Citibank and Societe Generale. In late July 2017, however, Euroclear and Paxos announced the end of their pursuit of a joint precious metals settlement platform. On May 17, 2018 the NYDFS licensed Paxos to offer Bankchain commercially.
With a May 2018 Series B raise of $65 million, Paxos has raised a total of at least $93.3 million in funding.
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- Paxos Standard Token (PAX). CoinMarketCap.
- Top 100 Cryptocurrencies by Market Capitalization. CoinMarketCap.
- Introducing Paxos Standard (PAX). Paxos.
- Stablecoin projects are paying rebates to traders, and it caused a big headache for Paxos. Theblockcrypto.com.
- Gold-Backed Cryptocurrency Is Almost Here. Fortune.
- ItBit Rebrands as Paxos Amid Blockchain Pivot. Coindesk.
- Global Banks Pilot Blockchain-based Gold Settlement Platform. Coindesk.
- Euroclear and Paxos End Blockchain Gold Settlement Partnership. Coindesk.
- DFS CONTINUES ACTIONS TO SUPPORT RESPONSIBLE INNOVATION IN NEW YORK’S FINTECH INDUSTRY. New York State Department of Financial Services.
- Paxos Overview. Crunchbase.