Paxos raises Series D funding from Bank of America, Coinbase, and FTX. –

Fibo Quantum

In its Series D fundraising round, Paxos, blockchain services and tokenization startup have recruited Coinbase Ventures, FTX, Bank of America, and Founders Fund as investors. The donations of these institutions were described as “strategic investors,” but the amounts were not disclosed. Paxos has now raised over $540 million in venture capital.

It is backed by Bank of America, FTX, and Coinbase.

Paxos, a New York-based blockchain infrastructure firm that focuses on giving clearing and tokenization services to other traditional firms, has received investments from two main cryptocurrency exchanges and the second-largest U.S. bank.

The fact that Bank of America is interested in the company is not surprising. Paxos Settlement services, a blockchain platform that allows third parties to settle equity transactions, now includes the bank. However, its investment in Paxos indicates that it sees a future in which blockchain technology is more widely used and integrated with existing financial institutions. Paxos CEO Charles Cascarilla commented on this, saying, “Paxos leverages new technology to develop the regulated infrastructure that will enable an open, accessible, and digital economy.” We’re helping to define this field, and we’re looking forward to expanding our enterprise solutions beyond these market leaders.

This Series D capital round, which raised more than $300 million, included significant investments from Paypal Ventures and Mithril Capital.

Also read: Robinhood Owns Largest Dogecoin Address :report

The Stablecoin Debate

The company claims to have an advantage over competitors since it is a fully regulated platform, having secured a Bitlicense from the New York State Department of Financial Services (NYDFS) in October 2020. PayPal, Bank of America, Credit Suisse, Societe Generale, and Revolut are among its clients.

Paxos is also the custodian and issuer of Binance USD and Paxos Standard, two stablecoins on the market. Last week, the company released the assets that back its stablecoins, and it slammed other companies who don’t back their stablecoins entirely with cash or cash equivalents. Its CCO, Dan Burstein, chastised these organisations, claiming that no regulator would tolerate such conduct.

Paxos is also interested in bridging the gap between blockchain and traditional finance markets. The Office of the Comptroller of the Currency (OCC) granted it Preliminary Conditional Approval for a US Bank Charter last year, allowing it to operate its own banking company.

 

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