Paxos Trust Company
 | |
| Formerly | itBit |
|---|---|
| Company type | Limited purpose trust company |
| Industry | Financial technology |
| Founded | 2012 |
| Headquarters | New York, NY[1] |
Key people | |
| Website | paxos |
Paxos Trust Company operates as a financial services firm and technology enterprise based in New York, focusing on blockchain technology.[2] The company offers services including cryptocurrency brokerage, asset tokenization, and financial settlement solutions.[3][4][5] Paxos’s bitcoin exchange platform, itBit, was the first to obtain a license from the New York State Department of Financial Services, authorizing it to provide custody and exchange operations for clients within the United States.[6][7]
Established in 2012,[8] Paxos maintains its headquarters in New York City, with additional offices located in London and Singapore.[9] By the year 2021, the firm had amassed $540 million through various funding rounds.[10]
History
Paxos was established in 2012 by Charles Cascarilla and Rich Teo under the name itBit, initially operating as a Bitcoin exchange. In 2015, the company transitioned to Paxos Trust Company and obtained a limited-purpose trust charter from the New York State Department of Financial Services, marking it as the first regulated U.S. firm authorized to provide crypto-related products and services.
In May 2018, Paxos raised $65 million in capital. That same year, the company introduced the Paxos Standard stablecoin, recognized as one of the earliest regulated stablecoins in the industry. By September 2019, Paxos launched PAX Gold, a pioneering regulated digital token backed by physical gold.
The U.S. Securities and Exchange Commission (SEC) granted Paxos a no-action letter in October 2019, allowing it to test a blockchain-based settlement platform for U.S. equities, which officially went live in February 2020. Paxos expanded its offerings in July 2020 by initiating a crypto brokerage service, with Revolut as its first client.
In October 2020, Paxos entered into a partnership with PayPal to facilitate cryptocurrency purchasing, holding, and selling capabilities for PayPal users.
September 2022 saw Canada’s financial trading firm OANDA collaborate with Paxos to build a cryptocurrency trading environment. By October 2022, OANDA incorporated crypto trading into its forex platform through Paxos’ itBit exchange for clients within the United States.
In June 2025, Paxos launched Paxos Labs, an incubator designed to assist institutional players in integrating decentralized finance (DeFi) and blockchain-based solutions into their existing frameworks.
Crypto brokerage
Paxos provides a crypto brokerage service that enables businesses to offer cryptocurrency market access to their clientele while managing regulatory compliance and technological infrastructure on their behalf.
Pax Dollar
Originally introduced as Paxos Standard (PAX) in September 2018 and later rebranded as Pax Dollar (USDP), this stablecoin is among the first regulated tokens pegged one-to-one with the U.S. dollar.
PAX Gold
PAX Gold (PAXG) represents a digital asset secured by physical gold holdings, with Paxos Trust Company serving as custodian for both the tokens and the corresponding bullion.
itBit
ItBit operates as a licensed digital asset exchange under New York State Department of Financial Services regulation, facilitating trades in bitcoin (BTC), Ethereum (ETH), Bitcoin Cash, Litecoin (LTC), and PAX Gold (PAXG).
Post-trade services
Paxos delivers post-trade automation solutions for precious metals and other asset classes, enhancing efficiency in trade confirmation and settlement processes among multiple participants.
Securities settlement service
Following SEC approval in October 2019, Paxos launched a blockchain-enabled settlement platform for stock transactions. Leading financial institutions such as Credit Suisse and Société Générale were among its initial users. The firm completed its inaugural blockchain-based securities trade settlement in February 2020.
References
- ↑ "Who We Supervise". New York State Department of Financial Services. Archived from the original on 23 May 2020. Retrieved 21 May 2020.
- ↑ "Paxos Trust Company LLC | VCfund.me Data". data.vcfund.me. Retrieved 2020-08-26.
- ↑ Roberts, Jeff John (15 July 2020). "Revolut bank offers cryptocurrency through Paxos 'plug and play' service". Fortune. Retrieved 29 July 2020.
- ↑ "Paxos Trust Co LLC". Bloomberg. Retrieved 21 May 2020.
- ↑ "Paxos Trust Company, LLC; Division of Trading and Markets No-Action Letter: Clearing Agency Registration" (PDF). U.S. Securities and Exchange Commission. Retrieved 29 July 2020.
- ↑ Popper, Nathaniel (7 May 2015). "Bitcoin Exchange Receives First License in New York State". The New York Times Dealbook. Retrieved 21 May 2020.
- ↑ Nasr, Reem (7 May 2015). "NY grants first banking license to bitcoin exchange itBit". CNBC. Retrieved 24 July 2020.
- ↑ Irrera, Anna (31 May 2018). "Blockchain and cryptocurrency startup Paxos raises $65 million". Reuters. Retrieved 24 July 2020.
- ↑ Hansen, Sarah (8 August 2018). "Bitcoin Custodian Paxos Enters Gold Market With Post-Trade Confirmation Product". Forbes. Retrieved 24 July 2020.
- ↑ "Paxos Raises $300 Million in Series D Funding at $2.4 Billion Valuation". Paxos. 29 April 2021. Retrieved 5 June 2021.