Paxos, a leading stablecoin issuer, cuts 20% of workforce. That comes as a move to ‘de-prioritizing adjacencies’, the company says.
According to Bloomberg report, the stablecoin firm is lessening its focus on non-core offerings.
The staff cut eliminates 65 employees. As a result, Paxos’ headcount will stay somewhere between 200 and 300.
Journalists were able to obtain an email sent by Paxos CEO Charles Cascarilla to the company staff. In that email Cascarilla explains that reduction will allow the company to “best execute on the massive opportunity ahead in tokenization and stablecoins.”
Cascarilla predicts that “stablecoins will 10x in the coming years and serve as the fulcrum for opening the financial system through tokenization.“
The email is full of quite victorious statements. Paxos CEO mentions that the firm is “in a very strong financial position to succeed,” with more than $500 million on its balance sheet.
At the same time, he claims that it is absolutely vital for Paxos to focus on its core business. He even uses a pretty vague term “de-prioritizing adjacencies.”
Though Cascarilla is not precise about what that means, Bloomberg reporters claim Paxos is about to ditch some of its commodities and securities settlement services. That means Paxos will stay focused on stablecoins - the kind of activity that brought the company to its well deserved fame.
Paxos has gained some pretty stark reputation for operating various stablecoin products. That includes Pax Dollar (USDP), which has a $135.9 million market cap, Pax Gold (PAXG), which has a $429.8 million market cap, and PayPal USD (PYUSD), which has a market cap of $398.8 million.
Paxos still runs Binance USD (BUSD), that was halted by Binance in February 2023. BUSD still has a market cap of over $70.5 million.
On a bright side, Paxos just announced the launch of a yield-bearing stablecoin called Lift Dollar (USDL). It will be operated through the company’s UAE-based affiliate - Paxos International.