Regulated dollar and euro stablecoins backed by cash and reserve assets
US dollarCash & treasuriesRegulated issuer
4.3/ 5
Our score
Very good
Tickers
USDPUSDGPYUSDPAXG
Pegged to
US dollar
Backing
Cash & treasuries
Reserve reports
Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC
Regulated issuer
Yes
What is Paxos?
Paxos is a regulated blockchain infrastructure company that issues fiat-backed stablecoins and tokenized assets. Its products include Pax Dollar (USDP), PayPal USD (PYUSD) and Global Dollar (USDG), alongside PAX Gold, which is backed by physical gold rather than a fiat currency.
Company and ownership
Paxos was founded in 2012 by Charles Cascarilla and Rich Teo. Cascarilla is CEO and co-founder; his background includes Cedar Hill Capital Partners, Liberty City Ventures, Claiborne Capital and analyst roles at Bank of America Securities and Goldman Sachs. Teo co-founded itBit, which later became Paxos. The company is headquartered in New York City and has raised $540 million. Named investors include Declaration Partners, Founders Fund and PayPal Ventures. Paxos reported more than 10 million active end-user digital wallets in April 2023.
How the stablecoins work
Paxos says its issued digital assets are backed 1:1 and held in accounts protected from bankruptcy. USDP is pegged to the U.S. dollar and is issued on Ethereum and Solana. USDG is available on Arbitrum One, Ethereum, Ink, Mantle, Robinhood Chain, Solana and X Layer. PYUSD is supported on Arbitrum One, Ethereum, Polygon PoS, Solana, Stable, Stellar and X Layer. The company provides minting, redemption, custody and transfer infrastructure for businesses and developers.
Its documentation includes identity onboarding for people and institutions, KYC refreshes and tax-document collection. Stablecoins can be deposited and transferred through supported integrations. BUSD deposits remain supported for conversion to USDP or redemption, while BUSD withdrawals are no longer available on the Paxos Platform.
Regulation and transparency
Paxos received a limited purpose trust charter from the New York Department of Financial Services in 2015 and became a national trust bank supervised by the Office of the Comptroller of the Currency in 2025. It also holds a Major Payment Institution license from Singapore’s Monetary Authority and operates a European entity supervised by Finland’s FIN-FSA. Paxos publishes reserve reports for its issued assets. KPMG issues the USDP and PYUSD attestations posted from February 2025, and the USDG attestations posted from February 2026.
Risks and limitations
These tokens depend on Paxos, its regulated entities and reserve custody arrangements. Stablecoins can trade away from their pegs during market stress. Issuer controls and blockchain smart contracts create freeze and redemption risks, while supported networks and redemption access depend on the specific token and customer onboarding status.
Founders
Charles CascarillaCEO and Co-Founder
Co-founded Cedar Hill Capital Partners and Liberty City Ventures, and formerly served as a portfolio manager at Claiborne Capital and analyst at Goldman Sachs.
Rich TeoCo-Founder
Co-founded itBit in 2012 prior to its rebrand to Paxos.
Best for:Businesses issuing stablecoinsInstitutional payment platformsDevelopers building stablecoin integrationsUsers holding regulated dollar tokens
Pros and cons
Pros
- National trust bank oversight from the OCC
- USDP and PYUSD attestations issued by KPMG from February 2025
- USDG supports seven listed networks
- Stablecoins are backed 1:1 under Paxos's stated model
- Monthly reserve reporting for PYUSD and USDG
- Institutional onboarding includes KYC and enhanced due diligence
Cons
- Redemption depends on eligibility and Paxos onboarding controls
- Stablecoin access varies by token and blockchain
- BUSD withdrawals are no longer available on the Paxos Platform
- Issuer controls and reserve-custody arrangements create freeze and redemption risks
- Tokens may trade away from their dollar pegs during market stress
Our review
4.3/5
Very good
Paxos provides bankruptcy-remote, federally supervised reserve backing across multiple stablecoins, but no longer proactively publishes monthly reserve reports for USDP.
Paxos operates under an OCC national trust bank charter, a NYDFS limited-purpose trust charter and a MAS Major Payment Institution license. The company issues several asset-backed tokens, including PayPal USD (PYUSD), Global Dollar (USDG), Pax Dollar (USDP) and Pax Gold (PAXG). Reserves backing these tokens consist of cash, cash equivalents and US Treasuries segregated from corporate funds in bankruptcy-remote accounts. Monthly reserve reports for PYUSD and USDG are prepared by KPMG LLP.
- Multiple regulatory entities govern issuance, such as Paxos Trust Company, N.A. in the United States and Paxos Digital Singapore under MAS supervision.
- All Paxos-issued fiat tokens retain administrative freeze functions to comply with legal freezes and sanctions compliance mandates.
- Paxos stopped proactively publishing monthly reserve attestation reports for USDP.
- Direct redemptions require an active, verified account on the Paxos Platform.
Venture backers include PayPal Ventures, Founders Fund and Declaration Partners, with total funding of $540M. The infrastructure serves enterprises and fintech platforms.
Specs
| Tickers | USDP, USDG, PYUSD, PAXG · unverified |
|---|---|
| Pegged to | US dollar · unverified |
| Backing | Cash & treasuries · unverified |
| Yield-bearing | No · unverified |
| Regulated issuer | Yes · unverified |
| Licenses & charters | National Trust Bank Charter (OCC), Limited Purpose Trust Charter (NYDFS), Major Payment Institution (MAS), Electronic Money Institution (FIN-FSA) · unverified |
| Chains | Ethereum, Solana, Arbitrum One, Polygon PoS, Avalanche, Ink, Mantle, Robinhood Chain, X Layer, Stellar · unverified |
| Reserve reports | Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC · unverified |
| Redemption terms | 1:1 direct fiat redemption via Fedwire, SWIFT, and CUBIX for verified institutional and enterprise platform accounts · unverified |
| Issuer can freeze tokens | Yes · unverified |
Not disclosed by the provider: Supply / market cap.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Fiat-backed stablecoins
USDP, PYUSD and USDG are designed for 1:1 redemption against the U.S. dollar.
Multichain issuance
USDG is issued across seven networks, including Ethereum, Solana, Arbitrum One and X Layer.
Reserve reporting
Paxos publishes reserve reports, with KPMG issuing attestations for USDP and PYUSD from February 2025.
Institutional onboarding
The platform supports person and institution onboarding, KYC refreshes and enhanced due diligence.
Stablecoin payments
Businesses can integrate stablecoin deposits, withdrawals, transfers and conversions through Paxos APIs.
Mint and redeem
Paxos provides minting and redemption infrastructure for eligible customers and supported digital assets.
Custody and transfers
Digital assets can be deposited and withdrawn 24/7 after the required blockchain confirmations.
Inside Paxos
Stablecoin Issuance
Provides minting, reserve segregation, and regulatory infrastructure for tokens such as PYUSD, USDG, and USDP.
PAX Gold (PAXG)
Issues digital tokens backed 1:1 by physical, investment-grade gold bullion stored in LBMA vault facilities.
Crypto Brokerage
Offers white-label trading and API infrastructure for banks, fintech applications, and brokerages to integrate digital asset trading.
Custody & Wallets
Delivers institutional digital asset custody infrastructure incorporating multiparty computation technology acquired from Fordefi.
itBit Platform
Operates as Paxos's digital asset trading and institutional exchange platform.
Paxos Securities Settlement Company (PSSC)
Acts as an SEC-registered clearing agency providing blockchain-native clearing and settlement for eligible securities.
Paxos screenshots
What users say about Paxos
User commentary on the platform is extremely limited, with insufficient feedback to identify recurring themes. PAX Gold is briefly noted for its regulatory standing and security relative to alternative gold tokens.
Based on 1 Reddit posts and comments from the last 12 months, checked Oct 23, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used Paxos? Share your experience below.
Funding and investors
$540MTotal raised
1Round
3Investors
-
Funding round Amount undisclosedDP Declaration PartnersVenture capital FF Founders FundVenture capital PV PayPal VenturesCorporate VCSource
FAQ
Who founded Paxos?
Paxos was founded in 2012 by Charles Cascarilla and Rich Teo, originally operating under the brand itBit.
What assets back Paxos-issued stablecoins?
Paxos-issued fiat stablecoins are backed 1:1 by cash, cash equivalents, and US government securities held in bankruptcy-remote accounts. Pax Gold is backed 1:1 by fine troy ounces of physical gold stored in LBMA vaults.
Who audits Paxos reserve accounts?
KPMG LLP issues monthly attestation reports for both PayPal USD (PYUSD) and Global Dollar (USDG). Previous attestations were conducted by WithumSmith+Brown and Enrome LLP.
Which blockchains support Paxos tokens?
Depending on the stablecoin, Paxos tokens are available on Ethereum, Solana, Arbitrum One, Mantle, Ink, Polygon PoS, Stellar, and X Layer.
Can Paxos freeze stablecoin addresses?
Yes, Paxos maintains smart-contract freezing capabilities on its issued stablecoins to satisfy court orders, sanctions, and regulatory mandates.
How can users redeem Paxos stablecoins for US dollars?
Direct redemptions for USD require an active, verified account on the Paxos Platform. Verified institutional and corporate clients deposit the tokens and withdraw fiat via Fedwire, SWIFT, or CUBIX.
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