Paxos Raises $300M, Joins Crypto Unicorn Club at $2.4B Valuation

The back-end provider for PayPal and Venmo is raising “confidence capital” to expand operations, said CEO Charles Cascarilla.

AccessTimeIconApr 29, 2021 at 10:00 a.m. UTC
Updated May 9, 2023 at 3:18 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Paxos has joined the crypto unicorn club with a massive funding round valuing the company at $2.4 billion.

The $300 million Series D was led by Oak, a growth capital firm focused on health care and fintech. Previous investors Declaration Partners, PayPal Ventures, Mithril Capital and others were also involved. Paxos announced a $142 million Series C in December.

  • What South Korea's Latest Election Means for Crypto Adoption in the Country
    00:38
    What South Korea's Latest Election Means for Crypto Adoption in the Country
  • Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
    00:52
    Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
  • What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
    19:02
    What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
  • Would You Get Paid in Crypto?
    00:57
    Would You Get Paid in Crypto?
  • The latest raise comes during a month when bitcoin hit all-time highs north of $64,000 and Coinbase’s public listing put the cryptocurrency industry in the national spotlight.

    “We’re raising this capital not because we think this is some kind of local maximum,” Paxos CEO and co-founder Charles Cascarilla said in an interview. “This really puts us in a great position now to scale the business and take advantage of opportunities to make acquisitions.”

    Paxos, founded in 2012, offers a slew of services connecting traditional players to the cryptocurrency markets. Just last week the firm secured a conditional charter from the U.S. Office of the Comptroller of the Currency (OCC) to spin up the Paxos National Trust Bank.

    Cascarilla said the new funding was not related to capital requirements for establishing a crypto bank but about keeping up with enterprise demand.

    “I would really call this confidence capital,” he said. “What this is about is our customers knowing that we’re going to be around for the next five to 10 years so that they can feel comfortable using us as their infrastructure.”

    Paxos was named as the infrastructure provider for PayPal’s crypto service last year. The relationship has expanded to include users of the PayPal-owned Venmo payments app. Other clients include Revolut, Credit Suisse and Societe Generale.

    Cascarilla said the 175-person Paxos has no plans for a stock offering anytime soon, despite Coinbase leading a passel of crypto firms into the public markets.

    As for eclipsing the $1 billion valuation mark for the first time: “I didn’t think it was gonna happen so quickly,” he said. “But, then again, the space has really shifted so quickly.”

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Zack Seward

    Zack Seward is CoinDesk’s contributing editor-at-large.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about