Paxos

Qualified Custodian

Established 2012

USA

21Rates Quality Score: 8.4/10

Paxos Trust Company is a US-regulated financial institution offering institutional-grade custody, settlement, and stablecoin infrastructure. Founded in 2012, Paxos holds a New York Trust Company charter and is one of the few crypto custodians with a federal banking license application. Its custody platform underpins products from major financial institutions including PayPal.

Paxos is a US-regulated institutional Bitcoin and digital asset custodian operating under an NYDFS Trust Company charter. It holds assets in proprietary multi-signature cold storage (95%+), undergoes annual SOC 2 Type II audits, and serves major financial institutions including PayPal.

Custody Model

ModelThird-Party

RegulatoryNYDFS Trust Company Charter; BitLicense

JurisdictionNew York, NY

Security

Cold Storage95%+

InsuranceCrime insurance policy covering digital assets held in custody; additional coverage provided through Paxos Trust Company's NYDFS-regulated capital reserve requirements.

Proof of ReservesMonthly third-party attestations published for stablecoin reserves (USDP, PYUSD); custody asset attestations available to institutional clients on request.

AuditsAnnual SOC 2 Type II audit; ongoing NYDFS regulatory examinations

Features

API Access Available

Mobile App No

Hardware Wallet Not supported

Institutional Available

Integrated Trading No

AssetsBitcoin, Ethereum, and major digital assets

About Paxos

Best for: Regulated US institutions seeking an NYDFS-chartered custodian with deep stablecoin and settlement infrastructure.

Paxos Trust Company, LLC is a New York-chartered trust company founded in 2012 and regulated by the NYDFS. Its custody platform stores the vast majority of client digital assets in multi-signature cold storage, with a small hot-wallet allocation for operational liquidity. Institutional clients benefit from segregated accounts, crime insurance coverage, and capital reserve protections required under NYDFS rules. Paxos publishes monthly third-party reserve attestations for its stablecoins (USDP and PayPal USD/PYUSD) and makes custody asset attestations available to institutional clients upon request. The platform undergoes an annual SOC 2 Type II audit and is subject to ongoing NYDFS supervisory examinations. Notable institutional clients and partners include PayPal, which uses Paxos infrastructure to power PYUSD.

Frequently Asked Questions About Paxos

Paxos is a qualified custodian, meaning it is a regulated financial institution authorised to hold client assets. This is important for institutional investors who are legally required to use a qualified custodian under regulations such as the SEC Custody Rule.

Paxos carries the following insurance coverage: Crime insurance policy covering digital assets held in custody; additional coverage provided through Paxos Trust Company's NYDFS-regulated capital reserve requirements.. Always confirm specific coverage terms, limits, and exclusions directly with Paxos before depositing assets.

Paxos stores 95%+ of assets in cold storage (offline). Cold storage protects against remote hacking by keeping private keys disconnected from the internet.

Paxos offers customised pricing depending on assets under custody and service level. Contact Paxos directly for a fee quote.

Paxos does not publicly list a minimum balance. Contact them directly for requirements based on your institution type and asset size.

About this analysis

21Rates Editorial TeamBitcoin Financial Research Analysts

Our research team analyses Bitcoin custody providers using proprietary quality scoring, regulatory research, and user reviews. We independently verify custody terms and maintain up-to-date information to help you make informed decisions.

Last verified: September 2026