Paxos, a regulated blockchain firm, and issuer of two stablecoins has added Bank of America, Coinbase Ventures, Founders Fund, and FTX as backers under “strategic investors” in Series D funding rounds, which started on April 29, 2021, raising $300 million.
In a press release by the company on July 29, following with Declaration Partners, PayPal Ventures, and Mithril Capital, Paxos has raised $540 million in fundings from these seven backers with a valuation of $2.4 billion as of writing.
Paxos was conceptualized, conceived, and materialized, keeping financial regulators in hindsight, and was allowed to issue regulated cryptocurrency assets and pilot centralized blockchain platforms with regulated entities.
It is not surprising for the second-largest bank, Bank of America, to have backed the Series D Funding Rounds. The Bank of America had joined the Paxos Settlement Service pilot, an Ethereum based blockchain service that helps facilitate faster settlement of stock trades. The bank had joined the pilot along with Credit Suisse and Japanese bank Nomura Holdings in May.
With the latest Series D funding round announcement and adding BoA to its Paxos Settlement Service, Charles Cascarilla, CEO of Paxos adds:
“We’re at the beginning of a technological transformation where new market infrastructure is needed to re-platform the global financial system. Paxos uses innovative technology to build the regulated infrastructure that will facilitate an open, accessible, and digital economy. We’re defining this space and are excited to grow our enterprise solutions besides these market leaders.”
Alongside providing centralized blockchain platforms, Paxos is also an issuer of Paxos Standard and Binance USD stablecoins. Later in July, it has revealed assets that backed its stablecoins contain ninety-six percent in cash and cash equivalents. The remaining four percent were accounted under U.S treasury bills which are set to expire in four months.
Napoleon Ta, a Partner at Founders Fund, adds to the press release:
“In a dynamic space, Paxos has distinguished itself as a leader in transparency and trustworthiness by building innovative enterprise products. We believe Paxos will unlock significant value by facilitating the mainstream adoption of crypto and blockchain technology.”
Paxos has been on the four front and taken a regulatory approach for porting traditional financial systems to the blockchain platform to the contrary of the rise in Decentralized Finance (Defi). Last year, Paxos was granted to operate as a bank under a Preliminary Condition Approval for a Bank Charter.