US Paxos Gets USD 65 Million Capital Injection

The company will use the funds to expand its business, including itBit exchange services.

by Marin Marinov
31 May • 2 min
In News

The owner of US itBit exchange, Paxos, said on Thursday it has raised USD 65 million from an investment round. The New-York based blockchain startup will use the money to significantly scale operations”.

“This additional funding will further our goals to eliminate settlement risk and expand our product offerings across geographies,” Andrew Chang, Paxos’ chief operating officer (COO) said in a statement. “We are continuing to invest in expanding our platform that simplifies our financial infrastructure, offers greater control and lays the foundation for the future.”

The investment round

Paxos attracted several venture investors in a Series B round, including Liberty City Ventures and RRE Ventures, which have already invested in various crypto companies.

Paxos is a registered trust company within the New York state, which enables it to take custody of mainstream financial assets and gives it a “competitive advantage”, according to CEO Charles Cascarilla.

“It is a crucial time in the financial markets. We are at an inflection point to reduce the risk in our financial system and free capital trapped by an archaic settlement system,” Cascarilla said in a the same statement.

Paxos was founded in 2012 as itBit Trust Company, but later rebranded. In 2016, itBit exchange split as a separate division in line with a plan to focus mainly on the Bankchain – a blockchain-based settlement platform that aims to streamline the post-trade process across capital markets.

However, Paxos plans to revive its cryptocurrency exchange business because of the explosion of crypto trading.

“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,” Cascarilla told Reuters on Thursday.

itBit exchange offers trading in Bitcoin (BTC) for US dollars, euro and Singapore dollars. The trading platform has a BitLicense, the special crypto exchange permit of the US state of New York, also granted to several trading platforms, including Gemini, Coinbase and Genesis.