Paxos reveals that BoA, Paypal, FTX invested in its $300 million fund raise
Paxos, the blockchain infrastructure company, has announced that Bank of America, crypto exchange FTX and also Paypal Ventures took part in its Series D round of funding in which it had raised $300 million.
Oak HC/FT had led the round of funding and Mithril Capital had also invested during this fundraise. So far, the company has raised $540 million in its various funding rounds. Bank of America is one among the illustrious list of clients that Paxos has at this time as the bank has been using the company’s permission, private, blockchain infrastructure system for its stock settlement.
Charles Cascarilla, CEO, Paxos, said: “We’re at the beginning of a technological transformation where new market infrastructure is needed to re-platform the global financial system. Paxos uses innovative technology to build the regulated infrastructure that will facilitate an open, accessible and digital economy.”
Paxos has also been providing infrastructure services for Paypal’s crypto platform which has since been using the same infrastructure for the Venmo app as well. Paxos also counts companies like Revolut, Credit Suisse, and Societe Generale as its customers and this explains why investors have been ready to pour in money to the company as its business model and robustness is clear for all.
It should also be noted that some of the investors are also Paxos’ existing customers which means that they would have seen the operations of the company from close range and it also makes business sense to invest in a company whose services they plan to use for the long term as it likely leads to a lot of cost savings as well.
Paxos was launched in 2012 and the snagging of Paypal onto its platform was considered to be a major move for the company last year. It helped to grow its volumes and it is reported that it presented a product to Paypal that made it hard to refuse. It is also reported that it makes money through a combination of charges and platform fees as it holds the underlying for all the cryptos that Paypal users buy. This gives it a lot of control over the crypto holdings and also paves the way for similar arrangements with other companies that want to enter the crypto space.
These are indeed interesting times for blockchain companies where a lot of tie-ups, investments, and innovations have been taking place over the last year or so and this has helped valuations of such companies to hit the roof.