Stablecoin issuer Paxos sent an email to staff saying it’s cutting its workforce by 65 people or around 20% of its staff. That’s according to The Block and Bloomberg, who viewed a company wide email that Paxos confirmed. The move comes despite a strong balance sheet. Two weeks ago we reported that PayPal received a New York trust charter for digital assets, which it has not yet formally announced. The two pieces of news may be related.
PayPal is a significant client of Paxos. It is the issuer of PayPal’s PYUSD stablecoin, it supports PayPal’s cryptocurrency activities through its ItBit crypto exchange service and provides custody for its crypto assets.
Landing a New York Trust charter means PayPal could handle its own stablecoin issuance and provide custody in-house. The payments giant acquired crypto custody technology firm Curv in 2021.
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