Paxos, a stablecoin issuer, reduced its workforce by 20% despite strong financial health and positive growth projections in the stablecoin market, as reported by Bloomberg on June 12.

In an email to employees announcing the decision, Paxos CEO Charles Cascarilla explained that the staff reduction aims to optimize the company's focus on the significant opportunities in tokenization and stablecoins ahead. Cascarilla predicted substantial growth for stablecoins in the coming years, foreseeing them as pivotal in expanding access to the financial system through tokenization.

The company emphasized its robust financial position, with over $500 million in its balance sheet, but highlighted the need to streamline operations by prioritizing core offerings while scaling back on peripheral activities.

Sources cited by Bloomberg indicated that Paxos plans to reduce its involvement in commodities and securities settlement services, focusing instead on core products. The company's decision affects 65 employees, reducing its total workforce to between 200 and 300 employees. Paxos has provided a severance package to affected employees, including those on approved parental or medical leave.

Paxos operates various stablecoin products, such as Pax Dollar (USDP) with a market cap of $135.9 million, Pax Gold (PAXG) with a market cap of $429.8 million, and PayPal USD (PYUSD) with a market cap of $398.8 million. Recently, Paxos expanded the availability of PYUSD to the Solana blockchain. Additionally, Paxos International, based in the UAE, launched a yield-bearing stablecoin named Lift Dollar (USDL) on June 5.

Despite halting the issuance of Binance USD (BUSD) in February 2023 following Binance's decision to discontinue support, Paxos continues to redeem and convert BUSD, which currently has a market cap of $70.5 million.