What’s Going On?
Financial tech company Paxos has raised an additional $65 million from investors, taking it to a total of $93 million in capital to date.
Why Does It Matter?
New York-based Paxos will use the cash to expand existing operations, reported Reuters. These include the provision of blockchain-based services to financial institutions and operating cryptocurrency exchange and custodian itBit.
The latest round is led by a consortium of existing investors, including Liberty City Ventures, RRE Ventures and Jay Jordan, said Paxos in an official statement.
Is That A Lot Of Money?
The Paxos announcement is overshadowed by Block.one’s multibillion-dollar ICO, but is still an important sign of confidence in cryptocurrencies.
“This additional funding will further our goals to eliminate settlement risk and expand our product offerings across geographies,” said Paxos COO Andrew Chang.
Following a rebrand in 2016, Paxos became licensed by the New York Department of Financial Services as a regulated trust, reported the New York Business Journal.
The Paxos board includes former New Jersey Democrat Senator Bill Bradley, who has previously praised bitcoin for its “potential to transform the world of finance”. Sheila Bair, former head of Federal Deposit Insurance, is also on the company’s board, as is Former Financial Accounting Standards Board (FASB) Chairman Robert Herz.