Fintech startup Paxos raises $65 million Series B funding to grow its blockchain-powered trust settlement platform

Paxos, a financial technology startup delivering pioneering blockchain solutions for global financial institutions, has raised $65 million Series B funding to further its mission to dramatically help financial institutions reduce settlement risk. The latest investment is led by a consortium of existing investors including Liberty City Ventures, RRE Ventures, Jay Jordan with participation from other investors. Paxos has raised a total of $93 million in capital to date. The company is using the new resources to significantly scale operations and further the delivery of modern day settlement solutions to the global capital markets.

Paxos is the first Blockchain-powered Trust, building products to simplify settlement and eliminate risk. Paxos delivers blockchain solutions for financial institutions, including Bankchain, a settlement platform transforming post-trade across capital markets. Its flagship service is Bankchain(TM), a next-generation blockchain settlement platform that is transforming post-trade across capital markets. Bankchain delivers instantaneous settlement and greater automation, offering market participants reduced counterparty risk, lower capital requirements and increased operational efficiencies.

Paxos’ initial focus is on the London bullion market with the new Euroclear Bankchain blockchain gold settlement service. Developed in collaboration with Euroclear, a leading global settlement house, Euroclear Bankchain will deliver instant settlement and simultaneous delivery versus payment (DvP) to the gold market for the first time while minimizing counterparty risk.

Paxos’ management team is led by CEO and Co-Founder Charles Cascarilla and its board of directors includes former FDIC chair Sheila Bair, former Senator Bill Bradley, former chair of the Financial Accounting Services Board Robert Herz, former chairman, president & CEO of Lotus Development Corporation Jim Manzi and former NYSE CEO Duncan Niederauer.

“It is a crucial time in the financial markets. We are at an inflection point to reduce the risk in our financial system and free capital trapped by an archaic settlement system,” said Charles Cascarilla, CEO of Paxos. “Over the past three years, we have focused on building the right infrastructure to enable a modern-day settlement solution that will unlock capital, mobilize assets and create value.”

“This additional funding will further our goals to eliminate settlement risk and expand our product offerings across geographies,” added Andrew Chang, COO of Paxos. “We are continuing to invest in expanding our platform that simplifies our financial infrastructure, offers greater control and lays the foundation for the future.”

Paxos continues to attract client adoption of its settlement platform both in the equities and precious metals market through its technology. This marks the first time blockchain technology is being deployed on a mainstream and real-time scale with many financial institutions and market participants who are leveraging it for their settlement needs. Currently, Paxos enables the precious metals and securities asset classes. As the first blockchain-powered trust, Paxos is the only company that can both digitize an asset and settle a trade. This regulated trust status is an essential capability to reduce risk in the system and evolve financial infrastructure.

Founded in 2013 by Charles Cascarilla and Richmond Teo, Paxos is a financial technology company and the world’s first blockchain-powered trust. As a modern-day settlement platform, the company’s mission is to unlock capital and create value through products that simplify settlement and eliminate risk.