Stablecoin issuer Paxos downsized its workforce by 20% despite robust finances and optimistic growth projections in the stablecoin market, Bloomberg reported on June 12.
In an email that notified employees of the change, Paxos CEO Charles Cascarilla said the staff reduction will allow the company to “best execute on the massive opportunity ahead in tokenization and stablecoins.”
According to a report from the Block, Cascarilla predicted that:
“Stablecoins will 10x in the coming years and serve as the fulcrum for opening the financial system through tokenization.“
Staff cut
The email added that the firm is “in a very strong financial position to succeed,” with more than $500 million on its balance sheet. However, it has decided to focus on its core offerings while “de-prioritizing adjacencies.”
Bloomberg’s source said Paxos intends to reduce its commodities and securities settlement services. Meanwhile, a source told the Block that the “adjacencies” are new products it once considered interesting.
The staff cut eliminates 65 employees, placing Paxos’ headcount between 200 and 300. Paxos has provided a severance package to employees, including workers with approved parental or medical leave.
Paxos operates numerous products
Paxos offers various stablecoin products, including Pax Dollar (USDP), which has a $135.9 million market cap, and Pax Gold (PAXG), which has a $429.8 million market cap.
The company is also responsible for PayPal USD (PYUSD), which has a market cap of $398.8 million. Paxos extended PYUSD’s availability to the Solana blockchain in May.
Paxos International, the company’s UAE-based affiliate, announced the launch of a yield-bearing stablecoin called Lift Dollar (USDL) on June 5.
The company continues to redeem and convert Binance USD (BUSD) after halting the stablecoin’s issuance in February 2023 following Binance’s decision to end for the stablecoin. BUSD continues to circulate even though issuance has ended, with a market cap of $70.5 million.