Paxos Shifts Focus from Retail Trading to Enterprise Infrastructure

Paxos is a regulated infrastructure provider for stablecoins and tokenized assets. Unlike retail exchanges like Binance or Coinbase, Paxos focuses on enterprise infrastructure. It issues USDGP (Pax Dollar) and partners with PayPal to issue PYUSD. Paxos also issues USDG via the Global Dollar Network and PAXG, a gold-backed token linked to physical gold in London vaults.

In 2026, Paxos announced it would retire its retail trading platform, itBit, to focus on enterprise infrastructure. The company plans to concentrate on a brokerage model that connects customers to external liquidity through Paxos's trading infrastructure.

Paxos operates under a trust charter and publishes monthly third-party reserve reports. It holds SOC 1 Type 2 and SOC 2 Type 2 certifications across its stablecoin, custody, and exchange services. However, this improved regulatory setup does not imply a spotless compliance record. In 2023, New York regulators ordered Paxos to stop issuing Binance's BUSD. In 2025, Paxos paid a penalty related to anti-money-laundering failures tied to that relationship.

Paxos has strong regulated infrastructure and deep institutional credentials. The main factor to consider before using it for custody or token issuance is its compliance history. The company offers a bug bounty of up to $1 million and has a documented incident-response process. Paxos provides key infrastructure for products such as PYUSD and USDG.