Paxos Reduces Workforce by 20% to Focus on Stablecoin Growth

Paxos, a prominent player in the blockchain space, recently announced a significant reduction in its workforce. Co-founder and CEO Charles Cascarilla communicated this decision to employees, explaining it as a strategic move to capitalize on opportunities in the tokenization and stablecoin markets.

In a message to employees, Cascarilla stated, “This allows us to best execute on the massive opportunity ahead in tokenization and stablecoins. With more than $500 million on the balance sheet, we are in a very strong financial position to succeed.” The layoffs affect 65 team members, reducing Paxos’ headcount to between 200-300.

Focus on Stablecoins

Paxos is honing its efforts on the burgeoning tokenization and stablecoin sectors. Recently, its UAE-regulated subsidiary, Paxos International, launched Lift Dollar (USDL), a regulated yield-bearing stablecoin. Cascarilla highlighted the uniqueness of USDL, stating, “The digital asset ecosystem has evolved to create mechanisms for token holders to earn yield on stablecoins, but these options are high-risk, opaque and have led to the failure of numerous firms. USDL is a first-of-its-kind—a regulated product, earning and paying safe yield on a daily basis.”

The launch of Lift Dollar is part of Paxos International’s broader strategy to collaborate with global crypto exchanges, wallets, and platforms. These partnerships will facilitate the distribution of USDL to individuals and institutions, delivering daily yield directly to user wallets. Currently, USDL is available in Argentina through platforms like Ripio, Buenbit, Manteca, and Plus Crypto.

Paxos has been actively expanding its stablecoin offerings. In January, it introduced native USDP on the Solana network. Additionally, the firm integrated Chainlink’s PayPal USD price feed in February, marking its entry into the tokenized real-world assets (RWAs) market.

By refocusing its resources, Paxos aims to lead in the rapidly evolving digital asset landscape, leveraging its strong financial position and innovative products to drive future growth.