Paxos secures $300 million to expand its operations and offerings

Paxos secures $300 million to expand its operations and offerings

A PayPal crypto partner, Paxos, has recently unveiled raising $300 million funding in Series D financing round; one of the largest fundraising ever amongst cryptocurrency and blockchain startups.

The Series D financing round was led by Oak HC/FT, with participation from previous investors including PayPal Ventures, Liberty City ventures, and Declaration Partners, amongst others. Apparently, the latest investment round values the company at $2.4 billion and brings its total capital raised to more than $500 million.

Reports suggest that the announcement comes just after Paxos’ Series C funding round of December 2020, wherein the firm raised $142 million at an undisclosed valuation.

As per official sources, Paxos plans to spend the recent funds raised in intensifying its regulatory compliance infrastructure and network, developing its headcount, exploring new acquisition opportunities, and scaling its operations through expanding platform capacity.

Importantly, the company also aims to onboard about three to five new customers of PayPal’s PYPL-1.2% size.

It has been reported that the firm has received provisional support for digital assets for the de novo Trust Bank agreement from the Office of the Comptroller of the Currency. Meanwhile, Paxos further aims to stand out as the first digital assets upholder regulated at both the federal and state levels.  

Speculations have it that Paxos is applying for a clearing agency license with the U.S Securities and Exchange Commission following its successful pilot test in which Instinet and Credit Suisse made use of Paxos’ blockchain-based settlement service platform to perform trades on the same day settlement cycle.

A source close to the company mentioned that they are also eyeing opportunities to apply the blockchain technology to private company shares, unregistered securities, and other kinds of investment products.

Speaking on the recent fundraise, Charles Cascarilla, Co-Founder and CEO at Paxos cited that the firm is looking forward to transforming as many assets as possible and re-platforming them into the blockchain-based world.

Source Credit: https://www.forbes.com/sites/ninabambysheva/2021/04/29/paypal-crypto-partner-paxos-raises-300-million-at-24-billion-valuation/?sh=7a0368a6180f