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

In an email to employees, Paxos CEO Charles Cascarilla explained that the staff reduction will help the company "best execute on the massive opportunity ahead in tokenization and stablecoins."

According to a report from The Block, Cascarilla predicted:

"Stablecoins will 10x in the coming years and serve as the fulcrum for opening the financial system through tokenization."

Staff Reduction

The email mentioned that the firm is "in a very strong financial position to succeed," with more than $500 million on its balance sheet. However, it has chosen to focus on its core offerings while "de-prioritizing adjacencies."

Bloomberg’s source indicated that Paxos plans to reduce its commodities and securities settlement services. A source told The Block that the "adjacencies" refer to new products the company had considered interesting.

The reduction eliminates 65 employees, bringing Paxos’ headcount to between 200 and 300. Paxos has provided severance packages to affected employees, including those on approved parental or medical leave.

Paxos Products

Paxos offers several stablecoin products, including Pax Dollar (USDP) with a $135.9 million market cap, and Pax Gold (PAXG) with a $429.8 million market cap.

The company also manages PayPal USD (PYUSD), which has a market cap of $398.8 million and was extended to the Solana blockchain in May.

Paxos International, the company’s UAE-based affiliate, launched a yield-bearing stablecoin called Lift Dollar (USDL) on June 5.

The company continues to redeem and convert Binance USD (BUSD) after stopping its issuance in February 2023 following Binance’s decision to end the stablecoin. BUSD still circulates with a market cap of $70.5 million.