Stablecoin issuer Paxos and payment provider MoonPay both cut nearly 20% of their workforce: Focusing on core products

The Block reported that stablecoin issuer Paxos revealed in an email sent to internal employees on the 12th that it will carry out layoffs of up to 20% of its workforce; additionally, payment processor MoonPay also announced a 10% reduction in staff last week. Both are cryptocurrency companies that have recently claimed to be in good financial standing but still find it necessary to downsize.

Paxos Cuts 20% of Workforce: Focus on Core Products

An undisclosed email revealed that Paxos has laid off 65 employees, approximately 20% of its total workforce, which currently stands at around 200 to 300 employees.

Paxos Co-founder and CEO Charles ‘Chad’ Cascarilla commented:

We are reducing our workforce by 20% to better position Paxos to capitalize on the significant opportunities in tokenized assets RWA and stablecoins.

He added, "With over $500 million in assets on our balance sheet, we are well-positioned for success in our current financially robust state."

He emphasized prioritizing the company's core products while lowering the priority of other ancillary products:

Stablecoins are expected to grow more than 10x over the next few years and become a linchpin of tokenized financial systems, while launching and expanding new regulated tokens will require more time and cost.

According to Bloomberg, Paxos is also planning to reduce its securities settlement services.

MoonPay Cuts 10% of Workforce: Overinvestment, Rising Costs

On the other hand, MoonPay, a startup payment provider actively involved in the Web3 space, announced a 10% workforce reduction last week, citing increased operational costs and lower-than-expected profits.

MoonPay CEO Ivan Soto-Wright wrote in a letter:

We are implementing a series of job cuts and structural adjustments that will affect approximately 10% of our employees.

According to LinkedIn data, around 30 employees are affected by this layoff.

Soto-Wright admitted that overinvestment in certain areas and regions led to increased operating costs:

As CEO, it is my responsibility, and not addressing this issue would be irresponsible to our team and shareholders.

Both Actively Engaging in Crypto Space

As a favored partner of crypto payment companies, Paxos currently offers various stablecoin products, including the approximately $400 million PayPal USD PYUSD, $430 million Pax Gold PAXG, and $145 million Pax Dollar USDP.

A few days ago, the company launched the Ethereum-based Lift Dollar USDL, a yield-stablecoin that distributes daily earnings.

Paxos Issues Yield-Bearing Stablecoin USDL, with earnings automatically distributed to wallets daily

On the other hand, MoonPay announced last month that it is launching a Web3 Tools platform to help large brands like Adidas, Gucci, and Puma create communities, manage loyalty, and generate new revenue streams.

Additionally, MoonPay will enable PayPal payments in the EU and UK, allowing users in these regions to purchase cryptocurrencies on the platform using their PayPal accounts.