Stablecoin issuer Paxos cuts 20% of workforce: report

Paxos reportedly laid off approximately 20% of its staff and the decision was communicated to affected employees via email on Tuesday.

Crypto publication The Block reported on Wednesday that Paxos co-founder and CEO Charles Cascarilla wrote a letter to employees to inform them of the “difficult decision” to lay off 65 team members.

Paxos CEO wrote:

“This allows us to make the most of the huge opportunity ahead of us in tokenization and stablecoins. “With more than $500 million on the balance sheet, we are in a very strong financial position to succeed.”

According to a source familiar with the details, Paxos’s number of employees has dropped to between 200-300.

Paxos has its eye on the stablecoin market

According to details in the email cited in the report, Paxos sees the layoffs as necessary as it seeks to capitalize on a huge opportunity in the tokenization and stablecoin market.

Paxos International, the United Arab Emirates (UAE)-regulated subsidiary of the US-based company, last week launched Lift Dollar (USDL), a regulated-yield stablecoin.

“The digital asset ecosystem has evolved to create mechanisms to enable token holders to earn returns from stablecoins, but these options are high-risk, opaque and have led to the failure of numerous firms,” Cascarilla said. “USDL is the first of its kind; a regular product, one that generates and pays safe returns on a daily basis.”

The launch of Lift Dollar will see Paxos International partner with global crypto exchanges, wallets and platforms to deliver daily earnings to user wallets. The company announced that these organizations will undertake the distribution of USDL to individuals and institutions.

USDL is currently available to users in Argentina through several platforms, including Ripio, Buenbit, Manteca and Plus Crypto.

Paxos expanded its stablecoin issuance in January this year, adding native USDP to the Solana network.

The firm also adopted Chainlink’s PayPal USD price feed in February to accelerate its entry into the tokenized real-world assets (RWAs) market.