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 PaxosIt depends on what you need it to survive. Paxos runs ny trust company (state-regulated) custody, which has a single point of failure: one institution's failure can reach your bitcoin. Proof of Custody scores it 79/100 as of 2026-03-02. Qualified custodian is a good fit for entities that must satisfy a regulator, an auditor, or an investment-committee mandate, and the wrong choice for anyone whose core requirement is that no single institution can move the coins — one institution can. The score is an editorial judgement; the facts to check are the custody model, the single point of failure and the incident history below.
| Custody model | NY Trust Company (State-Regulated) Proof of Custody classification from the provider's own documents |
|---|---|
| Single point of failure | Yes: one institution, device or person can move or lose the holding Record as of 2026-03-02 |
| Who holds the keys | Not published in enough detail to state |
| Independence standard | 0 of 4 pillars met |
| Insurance | Not disclosed by the provider |
| Regulatory standing | NY DFS Trust Charter; Singapore MPI License Jurisdiction: New York, USA |
| Qualified custodian | Yes, per the provider |
| Incidents in the registry | None recorded. Absence from the registry is not evidence of safety. |
| Fees | Custom institutional pricing Provider pricing page; verify before relying on it |
| Minimum | Institutional |
| Proof of Custody score | 79/100 Editorial judgement on the published methodology, as of 2026-03-02 |
Facts come from the provider's own documents and public filings, with the date they were last checked. The score is Proof of Custody's judgement. Dispute a row through the corrections process.
NY 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 79/100 in our independent review, including 87/100 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.