Service Provider Startup, Paxos raises $65 Million from Investors
An American financial technology startup, Paxos has raised $65 million USD from investors. The investors include the likes of Liberty City ventures, private equity executive Jay Jordan and RRE Ventures as per a report from Reuters.
Paxos initially named as itBit and founded in 2012 was at first a Bitcoin (BTC) exchange. It was later rebranded as Paxos which focused on providing services using blockchain technology. A trust company charter in the state of New York is held by Paxos which gives it some same benefits as a bank, including the capacity to take guardianship of mainstream financial assets.
It supposedly seeks to utilize the raised funds to support its operations, like giving blockchain-based services to financial establishments, and to run digital currency exchange and custodian itBit. Additionally, Charles Cascarilla, the Chief Executive Officer, said that the startup has been “pouring a lot of resources into it for the past nine months,” hoping for the company to launch more products.
“We will use the capital to help grow the business which is broadly our settlement business on the Paxos side and the crypto asset exchange and custodian on the itBit side.”
Paxos announced its vital partnership with Belgium-based asset and securities settlement cooperative Euroclear to establish a blockchain settlement service for gold markets in June 2016. As a global provider of Financial Market Infrastructure (FMI) services, Eurocare helps its user to be more successful by making it easier for them to settle domestic and cross-border securities transactions and safe keep their investments. They also, help their users manage the risks and exposures arising from their transactions. While the joint venture came to an end in 2017, Paxos has been creating and testing the framework with other financial institutions.
The framework was tested with no less than 16 market participants, including MKS PAMP Group, INTL FCStone Ltd, Barrick Gold Corporation, NEX EBS BrokerTec, ED&F Man, Citi and Société Générale. More than 100000 settlements were seen in the pilot program.
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