At Paxos, we’re closing out an exciting year of growth with an important milestone – we’ve achieved SOC 1 Type 2 Certification for our PAX Stablecoin and Crypto Asset Custody products. Paxos was found to have been operating effectively, and notably with no exceptions found across controls.
SOC stands for System and Organization Controls – it’s a set of standards for operational excellence used across the financial services industry. The standards are set out by the American Institute of Certified Public Accountants (AICPA). They’re designed to ensure institutions implement a base level of security, technology design and control to protect their customers.
We’re extremely proud that a third-party, independent auditor has verified that Paxos meets these standards. It takes enormous effort, resources and at least six months of rigorous examination of our operations and finances to achieve this designation. Paxos is now among only a handful of companies in digital assets to get SOC 1 Type 2 certified. With this, we’re showing our clients and the market that Paxos is a best-in-class organization focused on risk, security and compliance at every turn.
Paxos is a regulated Trust company, but we’re committed to increasing our trustworthiness as we scale. We’ll do this by pursuing transparency, regulatory designations (like our application for a Trust Bank charter from the OCC) and security certifications (we’re in process on our SOC 2 Type 2 certification) whenever possible. Adhering to the highest standards is crucial as we build modern market infrastructure for an open, digital economy. We believe that by always increasing the trustworthiness of Paxos, we can bring digital assets to more enterprises across financial services.