- Paxos have raised $240 million in a Series C funding round led by Declaration Partners
- The crypto custodian is now one of the highest funded firms in the crypto industry
- The firm has raised capital to take growing opportunities advantage
- PayPal’s crypto partner soon to become the first custodian regulated at both the state and federal levels
Paxos, the cryptocurrency partner of PayPal, has reportedly raised $240 million in a Series C funding round. It is known that Declaration Partners have led the funding round. The funding round was closed late last month. It is also observed that billionaire David Rubenstein, PayPal Ventures, RRE Ventures, and Liberty City Ventures participated in the funding round. However, Rubenstein has invested $142 million among the total raised fund.
Paxos became one of the highest funded crypto firms
Paxos is one of the first Bitcoin startups as a regulated trust firm, offering digital assets custodial services in the United States under the banking laws of New York. After raising $240 million in the Series C funding round, Paxos is now one of the highest funded firms in the crypto industry. Before Paxos, Circle took the top position in the list of highest funded firms in the crypto space by raising $271 million. However, PayPal’s crypto partner has refused to disclose the investment value of the firm.
Why does Paxos have to raise this capital?
According to Charles Cascarilla, the CEO and co-founder of Paxos revealed that the number of customers of crypto custodial firms has increased to billions from millions in one year. Cascarilla explained that to take advantage of the growth opportunities, the firm has raised its recent capital. However, the firm plans to develop new financial products to help institutional clients track traditional assets like securities and commodities on the blockchain network. Indeed, some part of the raised capital will be invested in the firm’s regulatory infrastructure, which is critical for the firm’s success.
Paxos as the first custodian regulated at the state and federal levels
Earlier this month, the digital currency custodian firm applied for a national trust bank charter. The application was filed with the Office of the Comptroller of the Currency (OCC), a regulatory agency that has supervised the banks, branches, and foreign banks’ agencies. However, if the application gets approval, then PayPal’s crypto partner will become the first custodian of virtual assets that will be regulated at both the state and federal levels.
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