Paxos was founded in 2012 at the dawn of cryptocurrencies, digital assets and tokenization. Our “ItBit Exchange” catered to financial professionals and businesses. We also allowed retail customers to access our platform as there were few venues where people could safely buy and custody bitcoin in the early years.
Over the past decade, Paxos has evolved to become the premier partner for global enterprises embracing blockchain and digital assets. We’ve refined our approach to growing our business, secured the first NYDFS Trust Charter for digital assets in 2015, launched the first regulated stablecoin USDP in 2018, introduced the first gold-backed regulated token PAXG in 2019 and debuted Paxos Crypto Brokerage as a core solution for enterprises in 2020. Today, leading financial players – including PayPal, Mercado Libre, Nubank and Mastercard – choose Paxos because of its position as the most regulatorily compliant platform in the industry. They partner with us to build the tools necessary to custody and move real-world assets onto trustworthy, efficient digital ledgers. Alongside these big developments, we still supported the safe onboarding of retail customers through the itBit Exchange.
Paxos is further streamlining the platform to focus service on our core enterprise clients. Starting August 30, 2023, we will deprecate retail services for users on the itBit Exchange whose accounts are inactive or have little to no balance. Of these accounts, in a typical month, only a small number access itBit and contribute de minimis volumes. This action does not impact any users accessing Paxos through our Paxos Crypto Brokerage product.
In the coming month, Paxos representatives will reach out to affected itBit users to notify of the change and begin the process of moving funds to legally permissible external addresses or bank accounts. Stablecoin redemption is not affected by this change and Paxos token-holders will continue to have access to redeem Paxos-issued stablecoins.
Paxos remains committed to serving global financial institutions as the premier regulated tokenized infrastructure platform. This initiative will allow us to best serve our enterprise partners.
We expect to complete this transition by the end of October. We anticipate that impacted users will have questions about next steps. We are here to help so that this is a smooth transition. We will provide more information to affected itBit users in the coming weeks. In the meantime, please reference our FAQs for more information.