Layoffs of 65 employees announced by Paxos, with the company concentrating its efforts on tokenization moving forward.

In a surprising move, Paxos, the digital asset infrastructure provider, has announced layoffs of 65 employees, representing approximately 20% of its staff. The news was shared in an email to employees by CEO Chad Cascarilla.

Cascarilla expressed regret about having to take this course of action, acknowledging that it was a tough day for the company. He took responsibility for the decision, stating that it was necessary to de-prioritize adjacencies and focus solely on Paxos's core offering.

According to Cascarilla, stablecoins are expected to increase significantly in the coming years and will serve as the foundation for the expansion of the financial system through tokenization. This shift in focus is aimed at strengthening Paxos's position in the digital asset industry.

To support affected employees, Paxos is offering 13 weeks of severance pay, three months of subsidized health insurance, three months of outplacement support, and a two-year extension to exercise vested options. The company also provided second-quarter bonuses to employees on a quarterly incentive program.

Paxos has also made payments and benefits available to workers with approved parental or medical leave. Notably, the institution is in a financially strong position, with more than $500 million on its balance sheet.

The layoffs occurred roughly a week after the launch of the yield-bearing stablecoin Lift Dollar. Paxos is also planning to phase out its settlement services in commodities and securities, focusing instead on boosting its focus on tokenization of assets and stablecoins.

Information about the layoffs at Paxos was obtained by The Block, while details about the specific schools of thought on disrupting the banking space were not provided in the statement. However, it is clear that Paxos is positioning itself for growth in the digital asset sector.

Layoffs of 65 employees announced by Paxos, with the company concentrating its efforts on tokenization moving forward.