Quick Verdict
Paxos is not a retail exchange like Binance, Coinbase, or Bybit. Instead, it focuses largely on providing regulated infrastructure for major stablecoins and tokenized assets.
Paxos issues USDGP (Pax Dollar) and partners with PayPal to issue PYUSD. It also issues USDG via the Global Dollar Network, and issues PAXG, a gold-backed token that’s linked to physical gold in London vaults.
Paxos recently announced that it had retired its retail trading platform, itBit, to focus on enterprise infrastructure. Paxos says it plans to “concentrate on a brokerage model that connects customers to external liquidity through Paxos’s trading infrastructure”
Beyond its product suite, Paxos stands out for its regulatory setup. Paxos operates under a trust charter, publishes monthly third-party reserve reports, and holds SOC 1 Type 2 and SOC 2 Type 2 certifications across its stablecoin, custody, and exchange services (which it recently retired).
However, this improved regulatory setup does not imply a spotless compliance record. According to CoinGape News, New York regulators ordered Paxos to stop issuing Binance’s BUSD in 2023. In 2025, Paxos also paid a penalty related to anti-money-laundering failures tied to that relationship.
How We Scored Paxos?
- Paxos operates under a trust charter and publishes monthly reserve attestations, showing a strong regulatory setup.
- Paxos holds key security certifications such as SOC 1 Type 2 and SOC 2 Type 2 across its stablecoin, custody, and legacy exchange services.
- Paxos provides key infrastructure for products such as PYUSD and USDG.
- It offers a bug bounty of up to $1 million and has a documented incident-response process.
- Paxos faced an order from the NYDFS in 2023 to halt the minting of BUSD. It also paid a $26.5 million penalty and committed $22 million to compliance improvements over AML and due diligence failures linked to its relationship with Binance.
- Paxos does not offer individual trading accounts.
- Partners negotiate pricing directly with Paxos, making it harder to compare costs before applying.
How to Access Paxos Products?
As mentioned earlier, Paxos is not for retail users. Its ideal clients are brokers, fintechs, banks, and wealth platforms. To access Paxos’s products, these clients have to apply and connect via its APIs. Here’s a simple breakdown of the steps:
1. Start by selecting the product. Then, apply through Paxos for any of its services:
- Crypto Brokerage – Designed for broker-dealers, banks, wealth platforms, and fintechs that want to offer crypto trading without building the infrastructure themselves.
- Stablecoin Issuance – Built for fintechs, payment companies, and platforms (like PayPal with PYUSD) that want to launch a regulated, dollar-backed stablecoin. Paxos handles the trust-company oversight, reserve management, and compliance, while the partner focuses on
- Custody & Wallets – For institutions seeking secure, regulated digital-asset storage
- Stablecoin Payments – For businesses interested in stablecoin payments and transactions rather than traditional payment rails, enabling faster settlement and lower-cost cross-border transfers using Paxos-issued stablecoins.
- Tokenization – For institutions looking to bring real-world assets, such as gold, trade finance instruments, and commodities, onto the blockchain as tradable digital tokens.
2. Complete the compliance review by providing business documents. Applicants also have to provide information for KYC and due diligence. Paxos reviews the application before approving.
3. Once approved, partners can connect via APIs.
4. After approval and integration testing, partners can launch the selected Paxos product/service
Final Verdict - Should You Use Paxos?
Paxos works well for institutions, fintechs, and developers that are interested in regulated stablecoin issuance, tokenization, crypto execution, and custody. Its transparent reserves, trust charters, and SOC certifications add to its appeal as a good infrastructure option.
A major consideration is its compliance history and the lack of support for retail users. As of 2026, Paxos has never been hacked; for businesses, that’s a strong record.
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Our Review Methodology
At CoinGape, we take our review methodologies seriously. Our recommendations are based on hands-on testing and objective evaluation criteria, with a clear separation between editorial analysis and commercial relationships.
Each platform included in this guide is reviewed using a consistent framework designed to reflect how the platform performs in real-world business use cases.
1. Hands-On Testing
We create merchant accounts and process real transactions on every gateway we review. This allows us to evaluate onboarding, checkout experience, settlement flow, and overall usability from a business perspective.
2. Fee Verification
All fees are verified directly through official documentation and test transactions. We assess percentage-based fees, fixed charges, conversion costs, and note any hidden or conditional fees where applicable.
3. Security Assessment
We evaluate security features, custody models, compliance certifications, and platform track record. This includes reviewing publicly reported incidents, regulatory positioning, and available security controls.
4. Support Testing
We contact customer support with real queries to assess response times, clarity, and effectiveness across available channels such as email, live chat, or documentation.
