Blockchain services and tokenization company Paxos added Coinbase Ventures, FTX, Bank of America, and Founders Fund as backers in the D round of financing that began in April last year. These institutions are classified as “strategic investors”, but the amount of their contributions has not been disclosed. Paxos has now raised more than $540 million in funding.
Bank of America, FTX and Coinbase invest in Paxos
Two leading cryptocurrency exchanges and the second largest bank in the U.S. Invest Paxos is a blockchain infrastructure company headquartered in New York, focusing on providing clearing and tokenization services for other traditional companies. Bank of America, FTX, and Coinbase participated as “strategic investors” in the company’s latest D round of financing started in April last year.
Bank of America’s interest in the company is not surprising. The company incorporated banks into its Paxos Settlement service, a blockchain platform that allows third parties to settle equity transactions. But its investment in Paxos means that they see a future where blockchain technology is more emerging and used in conjunction with traditional financial institutions. In response, Paxos CEO Charles Cascarilla said:
Paxos uses innovative technologies to build a regulated infrastructure to promote an open, accessible and digital economy. We are defining this space and are excited to develop our enterprise solutions outside of these market leaders.
This round of D financing also Featured The participation of important investments from companies such as Paypal Ventures and Mithril Capital raised more than US$300 million.
The company stated that it has advantages compared to other competing companies: as a fully regulated platform, it has received a Bitlicense from the New York State Department of Financial Services (NYDFS) in October 2020. Some of its customers are PayPal, Bank of America, Credit Suisse, Societe Generale and Revolut.
Paxos is also the custodian and issuer of two stablecoins on the market: Binance USD and Paxos Standard.The company disclosed the assets supporting its stablecoin last week criticize For other companies that do not support their stablecoins with cash or cash equivalents 100%. Its CCO Dan Burstein called on these organizations that no regulatory agency would allow these actions.
Paxos is also interested in connecting blockchain with traditional financial markets.Last year, it received The Office of the Comptroller of the Currency (OCC) preliminary conditional approval of the Bank of America charter for the operation of its own banking business.
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