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PayPal crypto partner Paxos raises $300 million

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Paxos raised $ 300 million in its series D funding round, raising its valuation to $ 2.4 billion.

The $ 300 million series D was led by Oak, a healthcare and financial technology investment firm. Funding was also provided by former investors Declaration Partners, PayPal Ventures, Mithril Capital and others.

According to Paxos CEO Charles Cascarilla, the new funding will help accelerate the company’s plans to scale its operations, including through acquisitions. It also signals to potential partners in the financial industry that the company will exist for many years to come.

A senior executive at the company said the event reflects the growing demand for Paxos services.

What is Paxos?

Paxos, founded in 2012, offers a variety of services, connecting traditional players to the cryptocurrency markets. The startup provides services for PayPal and Venmo.

Last year, PayPal partnered with blockchain startup Paxos to launch its cryptocurrency service. This allowed more than 300 million users of the payment system to make transactions with digital assets.

PayPal became one of the company’s top clients last year when the FinTech giant decided to allow users to buy and sell Bitcoin and other cryptocurrencies on its platform. Rather than building its own crypto infrastructure, PayPal has decided to entrust Paxos with its server-side operations.

Paxos has developed a one-stop business model. This model includes over 100,000 ounces of proprietary gold-backed crypto products and a proprietary stablecoin, which is now the seventh largest by market capitalization.

Other clients include Revolut, Credit Suisse and Societe Generale.

However, several other companies of “about the same size” have approached Paxos and are planning to introduce similar features. To meet the demand, it is necessary to continue developing the platform, and this requires money. In addition, such large clients want to see that they are partnering with a large-cap company. To take advantage of this opportunity, the company conducted another round of funding.

Important events for the company

Just last week, the firm received a conditional charter from the United States Office of the Comptroller of the Currency (OCC) to create the Paxos National Trust Bank.

As a reminder, in December 2020, Paxos raised $ 142 million following the series C funding round.

In April 2021, Paxos announced that it was preparing to apply for a clearing agency license.

It should also be noted that Cascarilla said that 175-person Paxos has no plans to go public anytime soon, despite Coinbase leading a number of crypto firms in public markets.

Cascarilla also noted that Paxos plans to add “3-5 PayPal-like Clients” to its portfolio next year.

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