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Paxos Trust Company
Paxos, led by Charles Cascarilla, is a NYDFS-regulated trust that issues PayPal USD and provides crypto infrastructure for banks and fintechs.
Paxos Trust Company
Founded in 2012 by Charles Cascarilla, Paxos Trust Company started as a bitcoin exchange before pivoting to market infrastructure. Cascarilla, a former Goldman Sachs analyst and partner at Cedar Hill Capital, secured a New York State Department of Financial Services (NYDFS) trust charter in 2015 — the first granted to a digital asset firm. That charter subjects Paxos to bank-grade capital, custody, and compliance requirements that distinguish it from unregulated crypto exchanges. The firm is now headquartered in New York, with additional offices in San Francisco and Hong Kong. Paxos operates two interconnected businesses. First, it issues regulated stablecoins, including PayPal USD (PYUSD) for PayPal and Pax Dollar (USDP), each backed 1:1 by US dollar reserves held in bankruptcy-remote custody. Second, it provides white-label crypto brokerage and custody to financial institutions. Enterprise clients such as PayPal, Interactive Brokers, and Revolut integrate Paxos's API to offer crypto trading to their millions of end users without building their own regulatory and technology stack. The firm also offers post-trade settlement through its SEC-regulated clearing agency, Paxos Settlement Service, which has settled select US equities trades on a T+0 cycle on a private, permissioned blockchain. Paxos's footprint spans North America, Asia via its Hong Kong office, and Europe through institutional partnerships. In 2023, Paxos received a Wells notice from the SEC regarding its Binance-branded BUSD stablecoin and subsequently ceased BUSD issuance per NYDFS direction. That same year, PayPal selected Paxos to launch PYUSD, its US dollar stablecoin on Ethereum. The firm's strategic shift toward enterprise-grade partnerships — rather than direct retail offerings — accelerated. Paxos raised a $300 million Series D in 2021 at a $2.4 billion valuation from investors including Oak HC/FT, Declaration Partners, and PayPal Ventures (per the firm, 2021). Employee count is undisclosed. Paxos's trust charter requires it to hold customer assets separate from corporate assets in a manner comparable to a trust bank. It does not lend or rehypothecate stablecoin reserves without customer direction. This regulatory architecture is unique among major stablecoin issuers, most of which operate under state money transmitter licenses or offshore structures with less stringent asset protection. The firm's dual identity as both a stablecoin issuer and a regulated clearing agency creates a compliance moat that pure crypto-native competitors cannot easily replicate. Its ongoing relationship with the NYDFS and the SEC places Paxos at the center of the evolving regulatory perimeter for digital assets in the United States.
General information
Firm type
other
Year founded
2012
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Additional offices
San Francisco, CA · Hong Kong
Principals
Charles Cascarilla
CEO and Co-Founder
Sector focus
Frequently asked questions
Who runs investment and strategy decisions at Paxos?
Charles Cascarilla co-founded Paxos and serves as CEO, leading corporate strategy and product direction. The firm has not disclosed a CIO or separate investment committee. Strategic decisions, including enterprise partnerships and stablecoin launches, are driven by Cascarilla and the executive team. Major financial partners such as PayPal and Oak HC/FT hold board observer roles.
What does Paxos's NYDFS trust charter permit that a standard crypto exchange cannot do?
The charter subjects Paxos to bank-style regulatory oversight, including capital adequacy requirements, independent custody of customer assets, and regular examinations. It legally requires Paxos to segregate stablecoin reserves in bankruptcy-remote accounts, protecting them from claims by the firm's general creditors. Standard crypto exchanges typically operate under state money transmitter licenses with less stringent asset protection rules.
How does Paxos generate revenue?
Paxos earns fee income from three principal sources: interest on stablecoin reserve assets (net of any yield shared with partners), transaction and custody fees from its white-label brokerage clients, and settlement fees from its clearing agency business. The firm also earns management fees on partnerships where it operates infrastructure for third-party stablecoins like PayPal USD.
Which stablecoins does Paxos issue, and how are they backed?
Paxos issues Pax Dollar (USDP) and PayPal USD (PYUSD), both regulated by the NYDFS. Each token is backed 1:1 by US dollar deposits and short-term US Treasury obligations held in segregated accounts. Paxos publishes monthly attestation reports from a third-party accounting firm to verify reserves. In 2023, the firm ceased issuing Binance USD (BUSD) following a regulatory directive from the NYDFS.
Is Paxos structured as a family office or a venture-funded startup?
Paxos is a venture-funded, for-profit trust company. It has raised over $500 million from institutional investors including Oak HC/FT, Declaration Partners (the family office of David Rubenstein), PayPal Ventures, and RRE Ventures. The firm is not a family office and does not manage private capital for an individual family.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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