Paxos Cuts 65 Jobs to Focus on Tokenization and Stablecoins
Paxos, a cryptocurrency company specializing in stablecoins, has announced a significant reduction in its workforce, with 65 employees being laid off, representing 20% of its workforce.
This strategic decision comes as the company redirects its efforts towards tokenization and stablecoins, sectors that it identifies as major opportunities for its future development.
It’s a tough day. I take responsibility for this decision and I regret having to take this course. This allows us to make the most of the considerable opportunities that lie ahead in tokenization and stablecoins.
Charles Cascarilla, CEO of Paxos
Internal Communication and Financial Outlook
Charles Cascarilla, CEO of Paxos, shared in an internal email that these job cuts will enable the company to better position itself to capitalize on the vast opportunities presented by tokenization and stablecoins. He asserted that Paxos is in a “very strong financial position to succeed,” highlighting the company’s financial health with a balance sheet nearing $500 million.
Strategic Adjustments and Partnerships
Paxos faced a significant setback last year when the New York Department of Financial Services forced them to cease the issuance of Binance’s BUSD, a stablecoin that had reached a market capitalization peak of $16 billion.
However, in August 2023, Paxos bounced back by announcing a partnership with PayPal to launch a stablecoin, PYUSD, under the PayPal brand.
As part of its strategic realignment, Paxos plans to gradually withdraw from settlement services in the commodities and securities sectors. The company will now focus more of its resources and expertise on asset tokenization and stablecoin development. This refocusing aims to optimize Paxos’ operations and fully leverage the growth potential in these high-tech areas.
