Stablecoin Issuer Paxos and Payment Provider MoonPay Both Cut Workforce by Nearly 20 Focus on Core Products
The stablecoin issuer Paxos revealed in an email sent to internal employees yesterday (12) that it will undergo a workforce reduction of up to 20%; meanwhile, the payment provider MoonPay also announced a 10% workforce reduction last week. Both are recent examples of cryptocurrency enterprises claiming to be in good financial standing but still needing to downsize.
The undisclosed email stated that Paxos had cut 65 employees, approximately 20% of the total workforce, which currently stands at around 200 to 300 employees.
Paxos co-founder and CEO Charles ‘Chad’ Cascarilla stated:
“We are reducing our workforce by 20% to better position Paxos to seize the significant opportunities in tokenized assets (RWA) and stablecoins.”
He added, “With assets on our balance sheet exceeding $500 million, we are in a strong financial position to succeed.”
He emphasized prioritizing the company’s core products while lowering the priority of other ancillary products:
“In the next few years, stablecoins will grow more than 10 times and become the cornerstone of tokenized financial systems, and launching and expanding new regulated tokens will require more time and cost.”
It is also reported that Bloomberg revealed Paxos’ plans to reduce its securities settlement services.
On the other hand, MoonPay, as a new startup payment provider actively involved in the Web3 space, also announced a 10% workforce reduction last week citing increased operating costs and lower-than-expected profits.
MoonPay CEO Ivan Soto-Wright wrote in the email:
“We are implementing a series of job cuts and structural adjustments affecting approximately 10% of our employees.”
According to LinkedIn data, about 30 people are affected by this round of layoffs.
Soto-Wright admitted that excessive investments in certain areas and regions led to increased operating costs:
“As CEO, it is my responsibility, not addressing this issue is irresponsible to our team and shareholders.”
As a popular partner for cryptocurrency payment companies, Paxos currently offers a variety of stablecoin products, including the approximately $400 million PayPal USD (PYUSD), $430 million Pax Gold (PAXG), and $145 million Pax Dollar (USDP).
A few days ago, the company introduced the Ethereum-based Lift Dollar (USDL), a yield-generating stablecoin that automatically allocates daily profits to wallets.
Meanwhile, MoonPay announced last month the launch of a Web3 tool platform to help large brands like Adidas, Gucci, and Puma create communities, manage loyalty, and generate new revenue sources.
MoonPay will also open PayPal payment functionality in the EU and UK, allowing local users to purchase cryptocurrencies on the platform through their PayPal accounts.
