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Paxos Downsizes Workforce by 20%
Stablecoin issuer Paxos has implemented a workforce reduction of 20%, as reported by Bloomberg on June 12. Despite maintaining strong financials and optimistic growth projections in the stablecoin market, the company deemed this move necessary for future strategic focus.
In an email addressed to the employees, Paxos CEO Charles Cascarilla explained that the downsizing will enable the company to better capitalize on the opportunities presented by tokenization and stablecoins. Cascarilla expressed confidence in the stablecoin sector, predicting a tenfold increase in the coming years.
Financial Stability and Strategic Shifts
Although Paxos currently boasts a balance sheet with over $500 million, the decision to streamline operations aims to prioritize core offerings while deprioritizing peripheral services. Sources suggest that Paxos will be scaling back its commodities and securities settlement activities.
The workforce reduction, which affects 65 employees, brings Paxos’ total headcount to a range of 200 to 300 individuals. The company has offered a comprehensive severance package to impacted employees, including those on approved parental or medical leave.
Product Portfolio and Expansion
Paxos is renowned for its diverse range of stablecoin products, including Pax Dollar (USDP) with a market cap of $135.9 million and Pax Gold (PAXG) valued at $429.8 million. Additionally, the company oversees PayPal USD (PYUSD) with a market cap of $398.8 million, now available on the Solana blockchain.
Recently, Paxos International, the company’s affiliate based in the UAE, introduced Lift Dollar (USDL), a yield-bearing stablecoin, on June 5. Furthermore, Paxos continues to handle the redemption and conversion of Binance USD (BUSD) after discontinuing issuance in February 2023. Despite this halt, BUSD remains in circulation with a market cap of $70.5 million.
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