This strategic move, communicated directly to the 65 affected team members, is aimed at optimizing the company's resources to capitalize on the vast opportunities in tokenization and stablecoins. In an email, Charles 'Chad' Cascarilla, co-founder and CEO of Paxos, emphasized the company's solid financial position, which will enable it to succeed in this pursuit.

The affected employees have been offered a comprehensive separation package, including 13 weeks of severance pay, three months of subsidized health insurance, three months of outplacement support, and a two-year extension to exercise vested options. Additionally, the company has provided second-quarter bonuses to those who were on a quarterly incentive program and payments and benefits to anyone with approved parental or medical leave, in addition to the separation package.

Following this restructuring, Paxos' revised headcount now stands between 200-300 employees, according to a source with direct knowledge of the matter. Notably, Paxos, which was valued at $2.4 billion after its $300 million Series D funding round in 2021, has recently launched a regulated yield-bearing stablecoin called Lift Dollar (USDL) through its UAE-based entity, Paxos International. This move signals the company's commitment to intensifying its focus on regulated stablecoins and tokenization, a strategic shift that aligns with its long-term goals.

Cascarilla's email highlighted the promising future of stablecoins, predicting significant growth and their pivotal role in opening the financial system through tokenization. The company plans to dedicate resources to its core offerings, streamlining efforts by de-prioritizing adjacencies or new products initially considered viable but now deemed less essential. This strategic move allows Paxos to consolidate its focus on its core business and allocate resources more efficiently.

This workforce reduction follows a similar move by MoonPay, which laid off 10% of its staff despite having a robust financial position, underscoring the dynamic nature of the crypto industry. As the market continues to evolve, companies like Paxos are adapting to ensure they remain competitive and well-positioned for future growth.