Paxos CEO and cofounder Chad Cascarilla discusses his company’s partnership with PayPal, which just opened up its crypto purchase and selling product to all its US customers. In this episode, he covers:

  • how Paxos enables PayPal’s crypto product
  • the regulatory steps Paxos took to make this happen
  • why $200 billion company like PayPal would partner with a small company like Paxos
  • how Paxos Crypto Brokerage works 
  • how Paxos provides the regulatory cover that PayPal needs for this offering, along with custodial and liquidity services
  • why this product sources its coins on Paxos’s ItBit exchange
  • how the four crypto assets available on PayPal — bitcoin, ether, litecoin and bitcoin cash — were chosen
  • what other tokens one might expect to be offered through Paxos Crypto Brokerage, and possibly by extension by PayPal
  • how PayPal gets around the scaling issues on Bitcoin and Ethereum
  • whether Paxos’s stablecoin business might be used by PayPal
  • if PayPal does acquire BitGo, what that would mean for Paxos offering custody for PayPal through its brokerage
  • how Paxos’s equity settlement platform is going, and where it could go over time
  • how and why Paxos is applying to the SEC to become one of three clearing agents 

 

Thank you to our sponsor!

Crypto.com: http://crypto.com

Episode links:

Chad Cascarilla: https://www.linkedin.com/in/charlescascarilla/

Paxos: https://www.paxos.com

PayPal now offers crypto purchases to all its customers: https://www.theblockcrypto.com/linked/84398/paypal-opening-up-app-crypto-users

Original announcements about PayPal offering crypto purchases with Paxos: https://www.coindesk.com/paypal-new-york-conditional-bitlicense-paxos-cryptocurrency 

https://www.theblockcrypto.com/post/81794/paypal-to-enable-crypto-purchases-with-the-help-of-paxos

Paxos announcement: https://www.paxos.com/paypal-paxos-bring-crypto-to-millions-of-users/

Paxos Crypto Brokerage: https://www.prnewswire.com/news-releases/paxos-introduces-paxos-crypto-brokerage-service-to-power-digital-asset-buying-and-selling-in-any-product-301093761.html

PayPal approved for conditional BitLicense: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202010211

Paxos’s stablecoin business: https://www.theblockcrypto.com/genesis/54254/a-deep-dive-into-the-paxos-stablecoin-ecosystem

PayPal rumored to be in talks to acquire BitGo: https://www.coindesk.com/paypal-said-to-be-in-talks-to-buy-crypto-firms-including-bitgo-bloomberg

Paxos working with Revolut: https://www.coindesk.com/uk-fintech-firm-revolut-brings-bitcoin-ether-trading-to-us-customers

Paxos equity settlement business: https://www.theblockcrypto.com/linked/56494/paxos-equity-settlement-business-goes-live-with-credit-suisse-and-nomuras-instinet-as-first-clients https://www.theblockcrypto.com/post/44901/paxos-looking-to-upend-a-massive-corner-of-wall-street-credit-suisse-on-board-for-pilot

Link to the Crypto News Recap:

https://unchainedpodcast.com/1st-paxos-interview-since-paypal-news/