Paxos is a NY DFS-regulated trust company that issues stablecoins (USDP, PYUSD for PayPal) and tokenized gold (PAXG). Reserves are held in FDIC-insured bank deposits and short-duration US Treasuries. Monthly attestations are published by WithumSmith+Brown. Paxos operates as stablecoin infrastructure — powering PayPal's PYUSD and providing enterprise tokenization services.
Visit PaxosNY DFS-regulated trust company. Issues PYUSD for PayPal, USDP, and Pax Gold (PAXG). Monthly attestations by WithumSmith+Brown. Strongest regulatory position of any stablecoin issuer.
Single entity risk. Paxos was ordered by NY DFS to stop minting BUSD in 2023. B2B focus means limited direct consumer access.
1 independent party or system must fail before a Paxos holder's bitcoin is at risk.
Paxos's custody insurance is not publicly disclosed.
Paxos uses a ny trust company (state-regulated) model and scores 78/100 in our independent review, including 82/100 on custody security. One institution can move funds, which is a single point of failure. Safety depends on your priorities; see the full score breakdown above.
Paxos's custody insurance is not publicly disclosed in a form we can verify. Where it exists, custody insurance covers specific named events up to shared limits and does not cover price loss. Confirm coverage in writing before relying on it.
Because Paxos holds custody through a single institution, recovery in a failure would run through that institution's bankruptcy or resolution process and depends on whether assets were segregated and properly titled. This is the concentration risk of single-custodian models.
Paxos does not advertise a dedicated inheritance or beneficiary feature in the data we track. Confirm current options with the provider, since custody inheritance handling changes.