Currency Stock

As Bitcoin Reaches Moon, PayPal Cryptocurrency Partner Paxos Bags $142M In Fresh Funding

Paxos — the cryptocurrency partner of Paypal Holdings Inc PYPL 2.31% — has raised millions of dollars in a private funding round in the backdrop of Bitcoin shooting to never-seen-before highs.

What Happened: New York-based Paxos said in a statement Thursday that it had closed a $142 million Series C funding round led by Declaration Partners — an investment firm backed by the family office of billionaire-philanthropist David M. Rubenstein.

Other participating investors included Mithril Capital, PayPal Holding Inc’s PYPL 2.31% venture capital arm, RIT Capital Partners plc RITPF, RRE Ventures, and Liberty City Ventures.

Paxos CEO Charles Cascarilla noted that cryptocurrency and blockchain-based solution adoption by “enterprises has accelerated.”

“We are proud to count among our clients global leaders in payments, banking, trading and fintech,” Cascarilla said, ading that the clientele included PayPal, Credit Suisse Group AG CS 0.47%Société Générale SA SCGLY 0.36% and Revolut. 

Why It Matters: Paxos has raised $240 million to date. The latest investment round comes at a time when Bitcoin has hit unprecedented highs, reaching $23,642.66 on Thursday, a phenomenon the cryptocurrency community describes as reaching the “moon.”

See Also: Will Bitcoin ‘Rise 50% And Possibly Double’ In 2021? These Pros Think So

Last month, Paxos’ cryptocurrency volumes surge 500% in a month on the itBit exchange desk. 

PayPal began offering cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) to its customers in October.

In December, Paxos applied for a charter to form a national bank with the Office of The Comptroller of the Currency, saying the move would give it “flexibility” to operate across the United States.

Price Action: PayPal shares closed nearly 2.3% higher at $235.51 on Thursday and gained 0.53% in the after-hours session.

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