Paxos, the first blockchain-backed trust, has announced that it managed to raise $65 million from various investors according to a piece by Reuters. Paxos attracted investors such as Liberty City Venture and RRE Ventures in its latest funding round. Renowned American business executive Jay Jordan also backed the platform and expressed his confidence in its future performance.
Paxos has come a long way and has many firsts in the blockchain and Bitcoin circles. It was originally unveiled as itBit, a Bitcoin exchange platform based in New York and operating across the United States. It was the U.S.’s first regulated Bitcoin exchange platform, which made it gain the trust of institutions and professionals from across the globe. It also had an OTC Agency trading desk as well as a crypto asset custody services department.
Today, itBit is formally known as Paxos and is also a first of its kind – it is the first blockchain-powered trust. It has been developed with the aim of taking advantage of the increasing use of blockchain technology in financial markets. It will start with automating settlements and settling trades through the use of blockchain technology. It has already started doing this for precious metals, and it promises to broaden its portfolio to include options, securities, and stocks, among other items in the coming future. It also still runs its Bitcoin exchange platform, which it plans to use to facilitate trades and settlements.
$65 million is a show of confidence in Paxos considering that it is the first of its kind in the field. However, CEO and co-founder Charles Cascarilla says that a lot more has gone into bringing Paxos to where it is today. According to Cascarilla, Paxos has been receiving major improvements over the past nine months, and they expect to pour in more resources in the coming future.
According to Cascarilla, Paxos will not only bring good rewards to investors but also promise good tidings for those seeking to use its blockchain-backed platform to trade precious metals. He alleges that it will mobilize assets, unlock capital, and create value once trading and settlement begins. Other benefits of using blockchain technology, including security and transparency, are also expected to manifest in future trades and settlements once operations begin.
Recognized And Regulated by The Government
The Department of Financial Services (DFS), through the Financial Services Superintendent Maria T. Vullo, announced on May 18 that Paxos had been granted permission to operate a blockchain platform in New York – the platform is currently not in use in other states although its expansion is expected.
Ms. Vullo further added that this demonstrated how New York has become a pacesetter when it comes to regulating the fintech industry, which she pointed out was growing at a fast rate. She also added that it was a demonstration of how the DFS was committed to protecting the virtual currency market and its consumers as well as encouraging innovation seeing that Paxos is the first platform of its kind in the U.S.