Paxos, a prominent stablecoin issuer, has made the difficult decision to reduce its workforce by 20%, resulting in the departure of 65 employees. This move comes shortly after the launch of its yield-bearing stablecoin, USDL, by Paxos International.

According to sources, Paxos CEO Charles Cascarilla addressed the situation in an email, acknowledging the challenges faced by the company. Despite the layoffs, Cascarilla emphasized Paxos' robust financial position and took responsibility for the decision. The email also highlighted the growing adoption of stablecoins, but noted that launching and scaling new regulated tokens takes time.

Paxos, based in New York, is a regulated issuer of stablecoins, including USDP and PAXG. The company has also collaborated with PayPal on its stablecoin, PYUSD. Recently, Paxos received authorization from the New York State Department of Financial Services (NYDFS) to mint tokens on the Solana blockchain.

In conclusion, Paxos' decision to streamline its operations and reduce its workforce is a strategic move to position the company for future success. Despite the challenges, Paxos remains committed to innovation and growth in the stablecoin market.