STABLECOIN issuer Paxos has cut its workforce by about 20 per cent, or 65 people, according to an e-mail obtained by Bloomberg.
The job cuts, first reported by The Block, come at a time when Paxos has more than US$500 million on its balance sheet, chief executive officer Charles Cascarilla wrote in the e-mail to employees on Tuesday (Jun 11), and the company is “in a very strong financial position to succeed”.
A representative for Paxos declined a request for comment.
“This is a tough day. I take responsibility for this decision and regret having to take this course,” Cascarilla wrote, adding that the reduction in headcount “allows us to best execute on the massive opportunity ahead in tokenization and stablecoin”.
Paxos’ financial infrastructure was previously used to issue a stablecoin branded and promoted by the world’s biggest crypto exchange, Binance. But that stablecoin was phased out last year under pressure from US regulators, eliminating a major source of Paxos’s revenues. Among other coins, the company also issues a stablecoin branded by PayPal. Earlier this month, an affiliate of Paxos introduced the Lift Dollar, or USDL, issued in the United Arab Emirates.
Additionally, the company plans to phase out its settlement services in commodities and securities, and focus more on the tokenisation of assets and on stablecoins, according to a source familiar with the situation.
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Cascarilla pointed out that while stablecoins’ adoption will grow, “launching and scaling new regulated tokens takes time”. BLOOMBERG
