Paxos

According to the company’s history, Charles Cascarilla, Rich Teo and Emil Woods founded the business in 2012, with institutional bitcoin exchange itBit as an early product. Their asset-management background shaped its focus on market infrastructure and institutional services.⁠[1]

Paxos received a limited-purpose trust charter from New York’s Department of Financial Services, establishing a regulatory foundation for custody and trading. This state-supervised period preceded its later conversion to national trust supervision by the OCC.⁠[2][3]

The itBit founding team unveiled the Paxos brand, broadening its focus to blockchain infrastructure for global financial institutions. The name drew on a distributed-systems consensus concept; the company and the algorithm are distinct subjects.⁠[4]

The company introduced a dollar stablecoin in 2018, later known as Pax Dollar (USDP), added gold-backed PAXG in 2019, and launched Paxos Crypto Brokerage in 2020 to embed digital-asset trading and custody in enterprise applications.⁠[5][1]

Paxos announced a $300 million Series D led by Oak HC/FT at a $2.4 billion valuation. Participants included Declaration Partners, PayPalPayPalPayPal Holdings, Inc. (Nasdaq: PYPL) is an American digital payments company that operates payment brands including PayPal, Venmo, Braintree, and Xoom, providing online and in-store payments, money transfers, and consumer credit to consumers and merchants worldwide.Open the full entry Ventures, Mithril Capital, Liberty City Ventures and WestCap; proceeds supported staffing, platform capacity and regulated infrastructure.⁠[6]

Paxos dates its Singapore major payment institution licence to 2022. The regional business is supervised by the Monetary Authority of Singapore, with issuer identity and authorization scope distinct from its US and European entities.⁠[2]

New York’s financial regulator directed Paxos to stop minting Paxos-issued BUSD over safety-and-soundness concerns involving its Binance relationship. The action concerned that stablecoin business and did not mean all Paxos products ceased operating.⁠[7]

Paxos announced that from August 30 it would phase out services for inactive itBit retail accounts or those with little or no balance, concentrating on enterprise clients. It explicitly excluded Crypto Brokerage users and stablecoin redemption from the change.⁠[5]

PayPal announced PYUSD, issued by Paxos Trust Company and initially deployed as an Ethereum ERC-20 token. Its reserves comprised dollar deposits, short-term US Treasuries and similar cash equivalents, with monthly reserve reporting and third-party attestations.⁠[8]

Paxos joined Anchorage Digital, Bullish, Galaxy DigitalGalaxy DigitalGalaxy Digital (Galaxy Digital Inc., Nasdaq and Toronto Stock Exchange: GLXY) is a New York-based digital asset financial services and data center infrastructure company founded by Mike Novogratz, which says it was founded in 2018. It provides institutional clients with digital asset trading, lending, investment banking, asset management, staking, and custody technology services, and is building data centers in Texas for artificial intelligence and high-performance computing.Open the full entry, KrakenKrakenKraken is a digital-asset trading platform founded in 2011 by Jesse Powell and Thanh Luu and launched for trading in 2013. As Payward’s flagship brand, it has expanded into spot and derivatives trading, equities, tokenized assets, custody and payments through jurisdiction-specific entities.Open the full entry, Nuvei and Robinhood in launching Global Dollar Network around USDG, sharing economics with partners driving adoption. DBS was the principal banking partner for reserve cash management and custody at launch.⁠[9]

NYDFS announced a $48.5 million arrangement with Paxos: a $26.5 million penalty and $22 million for compliance improvements. It identified deficiencies in Binance due diligence, customer identification and transaction monitoring; the penalty and remediation expenditure are separate amounts.⁠[7]

Paxos announced an immediate halt to new Lift Dollar (USDL) minting, scheduling daily yield rebasing and platform dollar redemption to end on December 8. It planned conversion of compliant wallets holding more than $1 into equivalent USDG, reflecting a shift toward USDG and other priorities.⁠[10]

Paxos acquired institutional custody and wallet-technology provider Fordefi without disclosing financial terms. Its multiparty-computation wallets, policy engine and DeFi connectivity were to be integrated gradually, while Fordefi’s product continued operating independently.⁠[11]

Paxos’s August 2026 regulatory explanation confirmed completion of its state-to-national trust conversion on December 12, 2025. Paxos Trust Company, N.A. is an OCC-supervised national bank limited to trust operations, a scope distinct from ordinary retail banking.⁠[3]

Paxos announced SEC clearing-agency registration for subsidiary Paxos Securities Settlement Company (PSSC), covering eligible securities transactions. The process followed 2019 no-action relief and a US-equities settlement pilot that began in February 2020.⁠[12]

USDG launched natively on Arbitrum One as Arbitrum joined Global Dollar Network. Initial integrations included Fluid, Morpho, GMX, Maple and Uniswap; Kraken supported deposits and withdrawals, while Stargate enabled cross-chain transfers. Issuance involved separately regulated Singapore and EU entities.⁠[13]

Paxos supplies enterprise partners with custody, wallets, trading, stablecoin issuance and payments, and publishes token-reserve reports. Its website is paxos.com, its X handle is @Paxos, and LinkedInLinkedInLinkedIn is a social networking platform for professionals. It was founded in 2002 by Reid Hoffman and others, launched in 2003, and listed on the New York Stock Exchange in 2011; after Microsoft acquired it for approximately $26.2 billion in 2016, it became a wholly owned Microsoft subsidiary. Its revenue comes from membership subscriptions, advertising, and recruitment solutions.Open the full entry is /company/paxos/. Current company materials describe a remote-first organization.⁠[2][14][15]