Paxos Trust Company
Financial technology company
From Wikipedia, the free encyclopedia
Paxos Trust Company is a New York–based financial institution and technology company specializing in blockchain.[2] The company's product offerings include a cryptocurrency brokerage service, asset tokenization services, and settlement services.[3][4][5] ItBit, a bitcoin exchange run by Paxos, was the first bitcoin exchange to be licensed by the New York State Department of Financial Services, granting the company the ability to be the custodian and exchange for customers in the United States.[6][7]
 | |
| Formerly | itBit |
|---|---|
| Company type | Limited purpose trust company |
| Industry | Financial technology |
| Founded | 2012 |
| Headquarters | New York, NY[1] |
Key people | |
| Website | paxos |
Paxos was founded in 2012[8] and is based in New York City with offices in London and Singapore.[9] As of April 2021[update], the company has received $540 million in funding.[10]
History
Charles Cascarilla and Rich Teo founded Paxos in 2012 as the itBit bitcoin exchange.[11][12] In 2015, the company changed its legal name from itBit to Paxos Trust Company.[13] At the same time, the New York State Department of Financial Services granted Paxos a limited-purpose trust charter,[6] making it one of the first companies in the U.S. approved and regulated to offer crypto products and services.[14][15]
The company received $65 million in a funding round in May 2018.[8] In September 2018, Paxos launched the Paxos Standard stablecoin as one of the first regulated stablecoins.[16] Paxos introduced PAX Gold, a regulated gold-backed digital token, in September 2019.[13]
In October 2019, the U.S. Securities and Exchange Commission (SEC) issued a no-action letter allowing Paxos to pilot a blockchain-based settlement service for U.S. equities; the service launched in February 2020.[17][5][18] In July 2020, Paxos launched its crypto brokerage, with Revolut as the first client.[3][19]
In October 2020, PayPal announced that it would offer cryptocurrency buy, hold, and sell services to its users through a partnership with Paxos.[20][21]
In September 2022, Canada-based multi-asset retail financial trading services provider OANDA Global Corporation (OANDA) collaborated with Paxos to develop a crypto trading ecosystem.[22] On 20 October 2022, OANDA launched a crypto trading function on its forex trading platform in partnership with Paxos. The partnership allows U.S.-based clients of OANDA to trade cryptocurrencies on Paxos' itBit exchange through the OANDA mobile app.[23]
In June 2025, Paxos launched Paxos Labs, a startup incubated within the company to help institutions integrate decentralized finance (DeFi) and on-chain products into their platforms.[24]
In November 2025, it was announced that Paxos had acquired the New York-headquartered multi-party computation (MPC) digital wallet and custody technology startup Fordefi for an undisclosed amount.[25]
In December 2025, the U.S. Office of the Comptroller of the Currency (OCC) conditionally approved Paxos Trust Company’s application to convert its state trust charter into a national trust bank charter, subject to meeting the regulator’s conditions.[26][27]
Lobbying and political influence
In 2025, Charles and Marissa Cascarilla were among the donors who funded the White House's East Wing demolition and planned ballroom construction.[28]
Products
Crypto brokerage
Paxos provides a crypto brokerage so clients can give their customers access to the cryptocurrency market. The company manages the regulatory and technology components of cryptocurrency trading on behalf of its clients.[3][19]
Pax Dollar
Paxos Standard (PAX) that was renamed Pax Dollar (USDP), launched in September 2018, is one of the industry's first regulated stablecoins, tied to the U.S. dollar such that 1 PAX = 1 USD.[16][29]
PAX Gold
PAX Gold (PAXG) is a digital asset backed by physical gold.[30] Paxos Trust Company is the custodian for PAX Gold tokens and their associated physical gold bars.[31]
PayPal USD (PYUSD)
In August 2023, Paxos began issuing PayPal USD (PYUSD), a U.S. dollar–denominated stablecoin for PayPal, as a token on the Ethereum blockchain.[32] PayPal said PYUSD is backed by U.S. dollar deposits, short-term U.S. Treasury securities and similar cash equivalents, and is redeemable 1:1 for U.S. dollars.[33] In May 2024, PayPal announced that PYUSD would also be available on the Solana blockchain.[34]
itBit
ItBit is a digital asset exchange approved by the New York State Department of Financial Services to trade five digital assets: bitcoin (BTC), Ethereum (ETH), Bitcoin Cash, Litecoin (LTC), and PAX Gold (PAXG).[15][35][36]
Post-trade services
Paxos provides post-trade automation services for precious metals and other trades. Services include automation of trade confirmations and settlement among multiple parties.[9]
Securities settlement service
In October 2019, the SEC gave Paxos permission to establish a settlement service for stock trading. Credit Suisse and Société Générale were the first banks to sign on to use the service.[17] Paxos announced it had settled a securities trade on a blockchain for the first time in February 2020.[37]