Paxos has laid off approximately 20% of its workforce, informing the affected employees via email on Tuesday. According to reports, Paxos co-founder and CEO Charles Cascarilla addressed the team to convey the “difficult decision” to let go of 65 staff members.

“This allows us to best execute on the massive opportunity ahead in tokenization and stablecoins. With more than $500 million on the balance sheet, we are in a very strong financial position to succeed,”

Cascarilla emphasized the company’s strong financial position with over $500 million on the balance sheet. Following these layoffs, Paxos’ headcount now stands between 200-300 employees.

Paxos Eyes Stablecoin Market

The decision to reduce the workforce aligns with Paxos’ strategy to capitalize on opportunities in the tokenization and stablecoin market. Recently, Paxos International, a subsidiary regulated in the UAE, launched Lift Dollar (USDL), a regulated yield-bearing stablecoin.

“The digital asset ecosystem has evolved to create mechanisms for token holders to earn yield on stablecoins, but these options are high-risk, opaque and have led to the failure of numerous firms. USDL is a first-of-its-kind—a regulated product, earning and paying safe yield on a daily basis,”

Cascarilla highlighted the unique nature of USDL, which aims to offer a safe and transparent yield on stablecoins. Paxos International is partnering with global crypto exchanges, wallets, and platforms to deliver daily yield to user wallets. These entities will manage the distribution of USDL to both individuals and institutions.

Currently, USDL is available to users in Argentina through several platforms, including Ripio, Buenbit, Manteca, and Plus Crypto.

Expansion and Future Plans

This January, Paxos expanded its stablecoin issuance by adding native USDP to the Solana network. Additionally, in February, the company adopted Chainlink’s PayPal USD price feed to accelerate its entry into the tokenized real-world assets (RWAs) market.

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