Paxos, PayPal’s partner in its bitcoin and cryptocurrency services, reached a total valuation of over $ 2.4 billion. The figure arises from a new investment round in which Paxos managed to raise USD 300 million of new capital.
Paxos itself announced this Thursday, April 29, that it closed its financing series D, led by Oak, a company focused on medical services and financial technology. Companies such as Mithril Capital, Declaration Partners, Liberty City Ventures or PayPal, a Paxos partner that had already invested in the previous round, also injected capital.
The new inflow of investor capital could accelerate the development of new Paxos products. In fact, in the statement announcing the closing of the round, the company assures that it will invest in infrastructure, expansion of its team and an increase in its operations.
They will also advance “the development of their robust and regulated platform”, with the plan to create Paxos National Trust Bank. That is, they will advance in the provision of banking services after receiving a preliminary authorization to operate as a bank in the United States, as reported by CriptoNoticias.
Paxos also plans to “support your application for Clearing Agency registration with the Securities and Exchange Commission and obtain your license as a Primary Payment Institution in Singapore,” the press release added.
“The demand for our business solutions has accelerated much faster than we could have anticipated,” said Charles Cascarilla, CEO and co-founder of Paxos, which had already raised more than 140 million last December, after announcing its alliance with PayPal.
Increasingly valuable cryptocurrency companies
One might think that Paxos’ relationship with payment giant PayPal places this company in a privileged position. But the truth is that more and more companies focused on bitcoin and cryptocurrencies reach high valuation figures.
Founded in 2015, Paxos is part of the group of “unicorns” of the business sector dedicated to cryptocurrencies. The term, coined less than a decade ago, refers to private companies that achieve valuations in excess of $ 1 billion.
Other companies on that list that we can highlight are Bitpanda, which exceeded the benchmark figure in mid-March. Also companies in the cryptocurrency mining sector, such as Ebang, Bitmain or Canaan are considered “unicorns”, as are Ripple, the exchange Binance or Coinbase, which began trading on the stock market just a couple of weeks ago.