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Paxos, a leading blockchain infrastructure company known for its stablecoin, Pax Dollar (USDP), has laid off 20% of its workforce, or roughly 65 people, according to a report in The Block, which viewed a copy of an internal email signed by chief executive officer Charles Cascarilla
This news comes as a surprise to many, considering Paxos' apparent financial strength with a balance sheet exceeding $500 million.
Paxos was the first first US company to secure full Major Payments Institution licensing for Digital Payment Tokens (DPT) services in Singapore, in November 2022. Back then, Richmond Teo, co-founder and CEO, Paxos Asia, said the firm would make as many as 130 hires in Singapore over the next three years to add to its headcount of 20.
In the email Cascarilla said Paxos is making a strategic shift to focus its resources on regulated stablecoins and tokenization. Sources cited by The Block said the company plans to phase out its settlement services in commodities and securities.
Founded in 2012, Paxos offers a variety of blockchain-based solutions, including its flagship product, USDP. The company used to issue the Binance USD (BUSD) stablecoin, which was phased out in 2023, under pressure from US regulators. This cut a significant source of revenue for Paxos.
The company also issues the PayPal USD (PYUSD) and earlier this month launched the Lift Dollar (USDL) in the UAE.
