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Paxos
Fintech
Paxos is a New York-based blockchain infrastructure company providing regulated stablecoin issuance and crypto custody and trading infrastructure for financial institutions and technology companies.
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Paxos was founded in 2012 by Charles Cascarilla and Rich Teo under the name itBit, becoming one of the more heavily regulated and compliance-focused companies in the broader cryptocurrency industry, obtaining a New York State-chartered trust company license, a significant and relatively difficult-to-obtain regulatory status that has let Paxos operate certain crypto custody, stablecoin issuance, and trading services under closer regulatory oversight than many other cryptocurrency companies, a positioning the company has emphasized as a key differentiator given the broader industry's history of regulatory scrutiny and, in some prominent cases, significant fraud and mismanagement at less regulated crypto companies. Paxos has built infrastructure for issuing regulated, fully dollar-backed stablecoins, cryptocurrency tokens designed to maintain a stable value pegged to the U.S. dollar, and has notably served as the issuer for Binance USD (BUSD), a major stablecoin associated with the large cryptocurrency exchange Binance, until U.S. regulators, specifically the New York State Department of Financial Services, ordered Paxos to stop minting new BUSD tokens in early 2023 amid broader regulatory scrutiny of stablecoins and their relationship to unregistered securities concerns, an episode that significantly affected Paxos's stablecoin issuance business even as the company continued operating its other regulated crypto infrastructure services. The company also provides underlying infrastructure that lets other companies, including major financial institutions and technology platforms, offer their own customers cryptocurrency trading and custody services without needing to become licensed crypto custodians and exchanges themselves, powering crypto trading features for several major consumer platforms that wanted to offer cryptocurrency buying and selling without building this regulated infrastructure independently. Paxos has positioned its emphasis on regulatory compliance and licensing as an important differentiator and risk mitigation factor for institutional and enterprise partners wary of less regulated crypto infrastructure providers following high-profile industry failures. The company has raised substantial venture funding from investors including PayPal Ventures, Mastercard, and Declaration Partners, reaching a valuation exceeding $2.4 billion.
FOR QUALIFIED INSTITUTIONAL AND ACCREDITED INVESTORS ONLY: Under federal securities laws, private market investments on this platform are available exclusively to Institutional and Accredited Investors. Verification of status required before investing. Private investments involve significant risks including illiquidity, potential loss of principal, and limited disclosure requirements. "Augment" refers to Augment Markets, Inc. and its affiliates. Augment Markets, Inc. is a technology company offering software and data services, not a bank or financial institution. Cash Accounts are provided by Modern Treasury Corp. financial institution partners and through Augment's technology. Augment does not act as a money services business, provide money transmission, or serve as a custodian of funds. Funds held in your Cash Account are not FDIC insured unless expressly disclosed. Full terms available in the Augment Cash Account Agreement. Brokerage services are offered through Augment Capital, LLC, an affiliated broker-dealer and member FINRA/SIPC. "Investment accounts" are not brokerage accounts and do not hold customer funds or securities. Investment advisory services are offered through Augment Advisors, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Neither Augment Advisors, LLC nor Augment Capital, LLC provide legal or tax advice; consult your attorney or tax professional regarding your specific situation. For additional information, please refer to Augment Advisors, LLC's Form ADV Part 2A (Firm Brochure) and FINRA BrokerCheck.
