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 provides third-party services.
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 is a regulated blockchain infrastructure company providing crypto custody, settlement, and stablecoin services including USDP and PayPal USD (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: Oct 13, 2026