Thanks to a new funding round, the blockchain startup is powering PayPal’s new cryptocurrency service is gearing up for a big year in 2021.
Gearing Up for 2021
The company confirmed that it had raised $142 million in new funds and is looking forward to significant growth in the new year.
Per a press release, Paxos confirmed that its Series C funding round was led by Declaration Partners, a New York-based investment management firm backed by billionaire David Rubenstein. The round also included Mithril Capital and PayPal, which is already a major Paxos partner.
The funding round brings Paxos’ overall haul to $240 million. Company chief executive Charles Cascarilla explained that the funds would go a long way in bolstering its expansion plans as it looks to build the “market infrastructure of the future.” He added that the company would double its workforce, expand its product solutions, and create new products to target enterprises.
The CEO also reiterated his company’s commitment to regulation and security.
While Paxos appeared to have started the year quietly, the past few months have been monumental for the firm. The company was instrumental in PayPal’s smooth entrance into the crypto space, partnering with the payment processor to launch PayPal’s crypto service.
PayPal announced its crypto offering in October, confirming that it would allow users to spend cryptocurrencies at merchants that accept its service. The crypto service will support Bitcoin, Litecoin, Ether, and Bitcoin Cash. Explaining its role, Cascarilla said in a blog post that Paxos built the underlying platform that will power PayPal’s crypto service.
As the blog post explained, Paxos fits into PayPal’s service on two fronts. Its crypto brokerage service will provide PayPal with easy crypto trading and custody. The company is lending its API to the payment processor to promote an easy and seamless user experience.
BitLicense was also instrumental in helping PayPal secure a conditional Virtual Currency License (BitLicense), allowing it to provide its crypto services to New Yorkers.
Along with its PayPal integration, Paxos is also working towards becoming a fully-registered crypto bank. The stablecoin issuer filed its application last week, looking to incorporate its Paxos General Trust in New York.
A blog post to that effect explained that the company would hope to broaden its service range and coverage through the bank charter. The bank pointed out,
“Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way.”
With two business opportunities laying ahead, Paxos seems poised to become more of a force in the industry come 2021.