The (other) startup helping Bitcoin go mainstream

Crypto infrastructure startup Paxos -- which powers Paypal’s Bitcoin trading -- just raised $142m.

December 21, 2020

If you think you can avoid Bitcoin talk this holiday season, it’s not happening because:

  • Coinbase (the largest US crypto exchange) just filed for an IPO
  • BTC keeps hitting new highs
  • and Elon

That’s not all: Another crypto startup, Paxos, just raised a $142m round.

Paxos is a ‘plug-and-play’ service… 

… which provides regulatory know-how and back-end tech for companies to create crypto-related products per Fortune:

  • Stablecoins, which are cryptocurrencies pegged to fiat currency (e.g., US dollar)
  • Digital tokens for assets such as gold
  • Brokerage services, for trading of crypto

Notably, Paxos helped PayPal launch its consumer crypto-trading to 300m+ users.

And PayPal’s entry into the space may be a key driver in Bitcoin’s booming price, which has doubled to $23k+ since end-October.

Paxos has deep Wall Street roots

Its CEO — Charles Cascarilla — is a Goldman alum and works closely with key financial players like the SEC (regulatory body), Federal Reserve (central bank), and SWIFT (international money exchange network).

To get even more regulatory street cred, Paxos filed to become a chartered US bank.

Cascarilla tells Fortune that Paxos’ opportunity is huge, particularly as its unsexy infrastructure is not seen as a threat by other crypto players.

If the Bitcoin talk doesn’t stop, we know at least one person to point the finger at.

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