tl;dr
Stablecoin issuer Paxos recently laid off approximately 20% of its workforce, affecting 65 employees, reducing its headcount to between 200 and 300 employees. The decision came as the company held over $500 million on its balance sheet. Paxos CEO Charles Cascarilla announced the layoffs in an email,...
Paxos Undergoes Strategic Restructuring Sponsored Sponsored Paxos, a stablecoin issuer, recently underwent a strategic restructuring, culminating in the layoff of approximately 20% of its workforce, impacting 65 employees and reducing the headcount to between 200 and 300 employees. This decision comes as the company holds over $500 million on its balance sheet.
CEO Charles Cascarilla emphasized the company's solid financial position and dedication to success in tokenization, despite the regulatory challenges it faces. Cascarilla conveyed the strategic shift towards tokenizing real-world assets and stablecoins.
Paxos has provided substantial support to affected employees, including severance pay, subsidized health insurance, outplacement support, vested options extension, and additional benefits for those on approved leave. Concurrently, the company is reorienting its business strategy to concentrate on the burgeoning market of tokenizing real-world assets, aligning with market trends. This shift follows the discontinuation of their Binance-branded stablecoin due to regulatory pressures.
Market reports indicate the potential growth and impact of real-world assets tokenization, aligning with Paxos' strategic shift. A recent report revealed Paxos CEO Charles Cascarilla's optimism about the company's future in tokenization, supported by its strong financial position.
Sponsored Sponsored CoinGecko’s RWA Report 2024 highlights the significant market capitalization of commodity-backed tokens, with tokenized precious metals like Paxos’ PAX Gold (PAXG) constituting 83% of the market capitalization, amounting to $1.1 billion.
A collaborative report by the Boston Consulting Group and ADDX forecasts a lucrative future for real-world assets tokenization, predicting a market worth $16 trillion and a contribution of 10% to the global GDP by 2030.