Paxos secures $142 million investment from institutions such as PayPal: Asset tokenization, regulatory technology, and crypto banking

According to a report by Forbes, cryptocurrency service provider Paxos has secured a $142 million investment led by family office advisor Declaration Partners, including Paxos' partner PayPal Ventures, as well as existing Paxos investors RRE Ventures and Liberty City Ventures. The investment round is said to have been completed on November 24.

In October, PayPal had already publicly announced its partnership with Paxos. PayPal collaborated with Paxos to obtain a BitLicense from the New York State Department of Financial Services, enabling them to offer cryptocurrency buying and selling services. Next year, PayPal plans to further integrate cryptocurrency payments into its online stores, making it one of the most exciting developments of the year.

Paxos's Plan: Asset Tokenization, Regulatory Technology, Crypto Banking

Paxos has raised a total of $240 million to date, second only to the investment amounts of Bakkt and Circle. Bakkt raised $481 million, and Circle raised $271 million.

Paxos will use the funds to develop traditional asset tokenization businesses, such as securities and commodities. Additionally, they will invest in regulatory infrastructure such as regulatory technology. CEO Charles Cascarilla believes this is key to their successful partnerships with PayPal and Credit Suisse.

This year, Paxos submitted an application to the OCC for a national trust bank charter. Regulated by the New York State Department of Financial Services (NYDFS), Paxos is a locally compliant digital asset management company in the United States. The company stated that once they obtain the national trust bank charter, Paxos will be the first digital asset custodian to be regulated at both state and federal levels.

In a press release issued yesterday, Paxos's Chief Compliance Officer and General Counsel Dan Burstein stated, "Our mission is to modernize financial market infrastructure and transfer any asset reliably anytime, anywhere. The national trust bank charter will enable us to serve customers nationwide most effectively, helping us achieve our goals."

Selected for CB Insights Blockchain 50 Companies

In the recently released CB Insights Blockchain 50 companies list, which features fifty innovative companies in the global cryptocurrency and blockchain space, Paxos was selected and categorized under capital markets.