Paxos has laid off 65 people as it increases its focus on tokenization.
CEO Charles Cascarilla wrote in a company email that the firm is in a "very strong financial position to succeed.”
Digital assets company Paxos has laid off 65 people, or 20% of its staff, according to a report from Bloomberg.
In an all-hands email obtained by Bloomberg, its CEO Charles Cascarilla said that the layoffs “allows us to best execute on the massive opportunity ahead in tokenization and stablecoin" and the company is in a "very strong financial position to succeed"
Paxos has a balance sheet of around $500 million, according to disclosures from its various stablecoins.
However, the company took a hit last year when the New York Department of Financial Services forced it to stop minting Binance's BUSD in early 2023, which had a market cap of $16 billion at its peak.
In August 2023, PayPal announced that Paxos was its partner in launching a PayPal-branded stablecoin.
Paxos intends to gradually discontinue its settlement services in commodities and securities. Instead, it will concentrate more on asset tokenization and stablecoins, Bloomberg reported.