According to sources familiar with the matter, the stablecoin issuer Paxos is cutting 20% of its workforce. This development comes on the heels of Paxos International’s announcement of its yield-bearing stablecoin.
Paxos Lays Off 65 Employees Following Yield-Bearing Stablecoin Launch
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Paxos Trims Workforce by 20%
Bloomberg reports that Paxos has laid off 65 employees, which accounts for 20% of its staff. The information was revealed in an email obtained by Olga Kharif. In the email, Paxos CEO Charles Cascarilla emphasized the firm’s robust financial health, stating it is “in a very strong financial position to succeed.”
“This is a tough day. I take responsibility for this decision and regret having to take this course,” Cascarilla added.
Based in New York, Paxos is a regulated stablecoin issuer known for its pax dollar (USDP), a U.S. dollar-pegged cryptocurrency, and pax gold (PAXG), which is backed by one troy ounce of fine gold. Paxos also collaborates with Paypal on its stablecoin PYUSD. Previously, Paxos managed the stablecoin BUSD until the New York State Department of Financial Services (NYDFS) ordered the firm to cease minting BUSD.
Recently, the NYDFS authorized Paxos to mint tokens via the Solana blockchain. Additionally, on June 6, Paxos International introduced the lift dollar (USDL), a yield-bearing stablecoin not available in the U.S. and other jurisdictions. In his email, the CEO noted the growing adoption of stablecoins but acknowledged that “launching and scaling new regulated tokens takes time.”
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