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FTX, Coinbase and Bank of America back Paxos in latest funding round

Paxos, a New York-based blockchain infrastructure firm that focuses on offering clearing and tokenization services to other traditional firms, was backed by two leading cryptocurrency exchanges and the second-biggest U.S. bank in its Series D funding round. The three are Bank of America, FTX, and Coinbase and participated as “strategic investors” in the funding round of April. Paxos has raised over $540 million so far.

While Bank of America is already included by Paxos in its Settlement services, a blockchain platform that allows third parties to settle equity transactions, the decision to invest is something else. For the bank to invest in Paxos implies that they see a bright future for blockchain technology. A future where the technology will become more intertwined with traditional finance. Chief Executive Officer of Paxos, Charles Cascarilla said about this:

“Paxos uses innovative technology to build the regulated infrastructure that will facilitate an open, accessible, and digital economy. We’re defining this space and are excited to grow our enterprise solutions besides these market leaders.”

It was also revealed that the Series D funding round featured the participation of important investments from companies like Paypal Ventures and Mithril Capital, raising more than $300 million.

Stablecoins

Paxos considers itself to be ahead of other competing firms as they are a fully regulated platform, having obtained the New York State Department of Financial Services (NYDFS) issued Bitlicense in October last year. Paxos already services large businesses such as PayPal, Bank of America, Credit Suisse, Societe Generale, and Revolut.

In addition, Paxos is also the custodian and issuer of two stablecoins in the crypto market: Binance USD and Paxos Standard. Last week. the company revealed the assets backing its stablecoins and issues strong criticism for other companies that do not have appropriate backing for their stablecoins by putting up 100% with cash or cash equivalents. Paxos stated that there is no regulator that would accept these behaviors.

Last year, Paxos received a Preliminary Conditional Approval for a US Bank Charter, from the Office of the Comptroller of the Currency (OCC). This makes it possible for the firm to start running its own banking business.

The post FTX, Coinbase and Bank of America back Paxos in latest funding round appeared first on iGaming.

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Author: Peter Siu