Stablecoin issuer Paxos recently laid off approximately 20% of its workforce, affecting 65 employees. The layoffs reduced Paxos’ headcount to between 200 and 300 employees.This decision came as the company held over $500 million on its balance sheet. A recent report revealed that Paxos CEO Charles Cascarilla announced the layoff in an email on Tuesday. While acknowledging the difficulty of the decision, Cascarilla stated that the company remains “in a very strong financial position to succeed.”“This [layoff] allows us to best execute on the massive opportunity ahead in tokenization and stablecoins,” he explained.Read more: What is Tokenization on Blockchain?Paxos has offered substantial support to affected employees. This includes 13 weeks of severance pay, three months of subsidized health insurance, outplacement support, and an extension for vested options.Additionally, employees on quarterly incentive programs received second-quarter bonuses. Those on approved parental or medical leave received payments and benefits beyond the separation package.Paxos has been reorienting its business strategy to focus on the growing market of tokenizing real-world assets. This restructuring includes phasing out its settlement services in commodities and securities to concentrate more on tokenized assets and stablecoins. This shift follows the discontinuation of their Binance-branded stablecoin, BUSD, due to regulatory pressures.Cascarilla highlighted that while the adoption of stablecoins will continue to grow, launching and scaling new regulated tokens takes time. Nonetheless, he remains optimistic about Paxos’ future in tokenization, supported by its strong financial position.Paxos’ focus on tokenization aligns with market trends. CoinGecko’s RWA Report 2024 highlights that tokenized precious metals like Paxos’ PAX Gold (PAXG) make up 83% of the market capitalization of commodity-backed tokens. These tokens, backed by one troy ounce of physical gold, amount to a market capitalization of $1.1 billion.Read more: What is The Impact of Real-World Assets (RWAs) Tokenization?A collaborative report by the Boston Consulting Group and ADDX further affirms the potential of real-world assets tokenization. The report predicts that the tokenization of illiquid assets could create a business worth $16 trillion. By 2030, this tokenized market is expected to contribute 10% of the global GDP.DisclaimerIn adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
