First Blockchain-Powered Trust ‘Paxos’ Raises $65 Million

Blockchain and cryptocurrency startup Paxos told Reuters today that the company has received $65 million in funding from several investors. RRE Ventures, Liberty City Ventures as well as American business executive Jay Jordan backed Paxos. The money will be used to “expand its operations” in blockchain sector and to utilize its cryptocurrency exchange itBit.

“We will use the capital to help grow the business which is broadly our settlement business on the Paxos side and the crypto asset exchange and custodian on the itBit side,” said Charles Cascarilla, CEO and co-founder of Paxos.

The company was originally known as itBit and was launched in 2012. However, once renamed Paxos, the team started focusing on blockchain-related projects. Now that the cryptocurrency sector has a lot more to offer, the company is ready to make a comeback. Cascarilla added, “We have been pouring a lot of resources into it for the past nine months.”

Currently, Paxos promises to settle trades and automate the settlements using blockchain technology. Apart from precious metals, the website claims that securities and other options will be made available in the future. itBit, based in New York, has a live website that offers an exchange, OTC trading and custody services.

On May 18th, Maria T. Vullo, Financial Services Superintendent, announced that Paxos was granted permission by the Department of Financial Services (DFS) in New York to operate as a blockchain platform. “New York continues to lead the nation in regulating the growing fintech industry. These approvals demonstrate DFS’s commitment to protecting consumers and the virtual currency market while encouraging innovation, such as the expanded use of blockchain, and providing strong regulatory oversight to new and existing market participants,” said Vullo.

Cascarilla thanked the DFS and said that Paxos would provide “a modern day settlement solution for the precious metals market that will unlock capital, mobilize assets and create value.”