Paxos, a major cryptocurrency company and PayPal’s crypto partner, has completed a massive fundraising round shortly after receiving preliminary approval to form a national trust bank.
Thursday, The firm announced a new $ 300 million Series D funding round that brings Paxos’ valuation to $ 2.4 billion. The new funding round included previous Paxos investors: PayPal Ventures, Declaration Partners, Mithril Capital, Senator Investment Group, Liberty City Ventures, WestCap and others.
The newly raised funds will help Paxos continue to invest in enterprise-grade infrastructure development and further increase its commitment to regulation, safety and compliance, as well as expand operations, the firm said.
Following preliminary approval granted by the Office of the United States Comptroller of Currency last week, Paxos also plans to establish the Paxos National Trust Bank in the near future.. The company also applied for clearing agency registration with the Securities and Exchange Commission and is seeking a major payment institution license in Singapore.
Paxos co-founder and CEO Charles Cascarilla said demand for the company’s business solutions has accelerated much faster than the company had anticipated.
Founded in 2012, Paxos emerged as a major industry player that enables users to tokenize, custody, exchange, and liquidate digital assets. Paxos has issued stablecoins such as Paxos Standard pegged to the US dollar and gold-backed PAX Gold.
Last year, PayPal announced a partnership with Paxos to allow users to buy, sell, and hold cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Paxos also helped PayPal-owned payments company Venmo launch cryptocurrency trading last week.