Paxos is not a retail cryptocurrency exchange. Instead, it functions as a regulated infrastructure provider focused on stablecoin issuance, asset tokenization, and custody services for institutional clients, fintechs, brokers, and payment platforms.
Paxos Products and Services
Paxos issues USDG and the Pax Dollar (USDGP), and partners with PayPal to issue PYUSD. The company also issues PAXG, a gold-backed token linked to physical gold stored in London vaults. In recent years, Paxos retired its retail trading platform itBit to concentrate on enterprise infrastructure and a brokerage model that connects customers to external liquidity through its trading infrastructure.
Regulatory and Security Standing
Paxos operates under a trust charter and publishes monthly third-party reserve reports. The platform holds SOC 1 Type 2 and SOC 2 Type 2 certifications across its stablecoin, custody, and exchange services. The company maintains a bug bounty program offering up to $1 million and has documented incident-response procedures.
However, Paxos has faced regulatory challenges. New York regulators ordered the company to stop issuing Binance's BUSD in 2023. In 2025, Paxos paid a $26.5 million penalty and committed $22 million to compliance improvements related to anti-money-laundering and due diligence failures tied to its Binance relationship.
Access and Pricing
Paxos does not offer individual trading accounts. Instead, qualified institutions access its services through a formal application process requiring business documentation and KYC information. Once approved, partners integrate via APIs to access services such as crypto brokerage infrastructure, stablecoin issuance, custody solutions, stablecoin payments, and tokenization of real-world assets.
Partners negotiate pricing directly with Paxos, making it difficult to compare costs before applying.
Key Considerations
Paxos serves institutions seeking regulated stablecoin infrastructure, asset tokenization, and custody services. Its transparent reserves, trust charter, and security certifications support its position as institutional infrastructure. As of 2026, Paxos has not experienced a security breach. The primary considerations for prospective users are its compliance history and its exclusion of retail customers.
