Crypto Firm Paxos Trims Workforce by 20%, Shifts Focus to Stablecoins

Best Stablecoins to start your crypto investment in June 2024

Paxos, a stablecoin issuer, has reduced its workforce by approximately 20%, to 65 positions.

According to an internal email from Charles Cascarilla, the CEO, this decision is made even though the company has strong financial backing, with more than half a billion dollars on its balance sheet.

Paxos Trims Workforce by 20%,

In an email sent to the company’s employees and obtained by Bloomberg, Charles Cascarilla, the chief executive officer of Paxos, assured the employees that the company is financially sound, with its balance sheet having more than $500 million. However, the company still decided to cut down its workforce to enhance efficiency in its operations especially on tokenization and stablecoin projects.

”This is a difficult day. I accept the consequences of this decision, and I apologize for having made it,” Cascarilla stated in the email. The cut is believed to help the firm strengthen its position and take advantage of the vast opportunities that are expected in digital currencies.

Subsequent events such as halting a Binance-related stablecoin due to regulatory pressures, Paxos is readjusting its strategy. The firm is also withdrawing from the commodities and securities settling services while focusing more on stablecoins and the asset tokenization services.

Expansion and Innovation in Stablecoins

Last week, Paxos debuted the Lift Dollar (USDL) in the United Arab Emirates, which is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This new stablecoin also comes with a yield-generating feature that provides a programmatic daily rate that is similar to the returns on U. S. Treasury bonds.

‘We have enhanced programmatic daily yield so this is more looking like a savings product and less like a checking account,’ said Cascarilla in a conversation about the new product.

USDL’s launch is an important move in the Paxos’ plan to expand and create new products within the stablecoin niche. This move is particularly important for markets such as Argentina where Paxos has entered into agreements with local companies to increase the ease of use and adoption of the product.

Read Also: 56% of Fortune 500 Executives Are Testing On-chain Projects: Coinbase

The post Crypto Firm Paxos Trims Workforce by 20%, Shifts Focus to Stablecoins appeared first on CoinGape.


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