Stablecoin issuer Paxos has laid off around 20% of its staff despite being in a solid financial position.

"We shared a difficult decision to reduce our employee headcount by ~20%. We communicated this news to all 65 impacted team members directly," Charles 'Chad' Cascarilla, co-founder and CEO of Paxos, wrote to employees in an email on Tuesday, a copy of which has been obtained by The Block. "This allows us to best execute on the massive opportunity ahead in tokenization and stablecoins. With more than $500 million on the balance sheet, we are in a very strong financial position to succeed."

A Paxos spokesperson confirmed the email contents to The Block when contacted.

Paxos has offered affected employees 13 weeks of severance pay, three months of subsidized health insurance, three …