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Paxos, the regulated blockchain and tokenization infrastructure provider, has renewed and expanded its partnership with Solidus Labs, the leading crypto-native trade surveillance and risk monitoring company. Since 2023, Paxos has leveraged Solidus Labs’ AI-driven compliance technology to safeguard its platform, ensuring transparency, safety, and adherence to global regulatory standards. The expansion underscores both firms’ shared vision of building an institutional-grade digital asset market grounded in trust and compliance.
The collaboration reflects a broader industry consensus that regulatory-first innovation is the path toward unlocking the full potential of on-chain finance. By renewing and expanding its agreement with Solidus, Paxos reaffirms its approach: marrying innovation with rigorous oversight to meet the expectations of global regulators, institutional investors, and enterprise partners.
“Paxos has established itself as a pioneer and one of the most trusted leaders in digital assets. Their vision — that innovation must be built on uncompromising compliance and trust — is exactly what the industry needs as it enters a new era of institutional adoption and regulatory clarity,” said Asaf Meir, Founder and CEO of Solidus Labs. “Over the years, we’ve been proud to safeguard and enhance Paxos’ innovative platform with our crypto-native trade surveillance technology — together demonstrating the blueprint for the next era of finance: safer, more transparent, and resilient by design.”
Safeguarding Digital Asset Markets
Trade surveillance in digital assets remains a critical requirement for regulated players. The asset class is increasingly attracting institutional attention, but persistent concerns over market manipulation, transparency, and compliance have slowed mainstream adoption. Paxos has addressed this challenge by embedding Solidus Labs’ HALO platform — an AI-powered, crypto-native compliance system — directly into its infrastructure.
By doing so, Paxos strengthens its ability to detect, prevent, and mitigate risks in real time across the assets it supports. This aligns with its regulatory-first posture and reinforces its standing as a trusted infrastructure partner to some of the world’s leading enterprises.
Among its products, Paxos issues regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), alongside its affiliate Paxos International’s Lift Dollar (USDL) and Global Dollar (USDG). With this range of stablecoins and tokenized assets, surveillance and compliance become essential for protecting users and ensuring regulatory confidence across jurisdictions.
Takeaway
Paxos leverages Solidus Labs’ AI-powered HALO platform to safeguard its regulated digital assets and maintain institutional-grade trust in the fast-evolving crypto market.
Institutional Trust and Global Standards
Paxos is one of the most heavily regulated blockchain infrastructure providers in the world, licensed by authorities including the New York Department of Financial Services (NYDFS), the Monetary Authority of Singapore (MAS), the Financial Services Regulatory Authority (FSRA) of Abu Dhabi, and Europe’s FIN-FSA under MiCA. These approvals require not just technical robustness but also continuous compliance with surveillance, anti-money laundering, and market conduct standards.
By expanding its partnership with Solidus Labs, Paxos demonstrates its commitment to staying ahead of evolving regulations. The renewed engagement also reflects regulators’ increasing expectation that tokenization platforms integrate sophisticated, crypto-specific surveillance systems that mirror — and in some cases exceed — the standards of traditional finance.
Paxos’ institutional partnerships with firms like PayPal, Mastercard, Interactive Brokers, Mercado Libre, and Nubank further illustrate the importance of its compliance-first approach. These companies rely on Paxos infrastructure to tokenize, custody, and settle assets, and they require the highest levels of trust to engage at scale. Solidus Labs’ oversight technology ensures Paxos can deliver on this promise while expanding into new products and jurisdictions.
Takeaway
Global enterprises rely on Paxos’ regulated infrastructure; Solidus Labs’ surveillance ensures compliance that meets — and anticipates — regulatory standards worldwide.
Solidus Labs and the Rise of Agentic-Based Compliance
Founded in 2018 by Goldman Sachs veterans, Solidus Labs has built its reputation as the category-definer in crypto-native compliance. Its flagship HALO platform brings AI-driven, agentic-based oversight to financial institutions, crypto firms, and regulators, offering proactive risk detection across venues, assets, and products.
The system is designed to merge Wall Street-level rigor with the speed and complexity of crypto markets, where risks such as spoofing, wash trading, and cross-market manipulation can evolve rapidly. By applying intelligence-led surveillance, HALO enables compliance teams to respond quickly while maintaining auditability and transparency.
This model represents a shift away from reactive compliance to continuous, intelligence-led oversight. As institutional adoption of digital assets accelerates, systems like HALO are expected to become the norm for regulated market participants. For Paxos, leveraging Solidus Labs ensures its platform remains a benchmark for compliant tokenization and blockchain infrastructure.
Takeaway
Solidus Labs’ HALO platform introduces proactive, AI-powered surveillance — setting a new standard for digital asset compliance and risk management.
Outlook: Compliance as the Foundation for On-Chain Finance
The renewal and expansion of the Paxos–Solidus Labs partnership comes at a time when regulatory frameworks for digital assets are crystallizing worldwide. From MiCA in Europe to stablecoin regulation in the U.S. and Asia, market participants are under increasing pressure to prove they can uphold standards of safety, trust, and transparency.
Paxos’ strategy of pairing innovative tokenization products with uncompromising compliance positions it as a model for the industry. Its long-standing partnership with Solidus Labs illustrates how regulated infrastructure and crypto-native oversight can converge to create a more secure and trusted digital asset ecosystem. This is particularly critical as tokenized assets and stablecoins expand beyond crypto-native firms into mainstream finance.
By embedding proactive surveillance into its core infrastructure, Paxos is demonstrating how digital finance can scale responsibly. For institutions and enterprises weighing entry into the blockchain economy, this blueprint may serve as a guide: innovation is sustainable only when built on compliance-first foundations.
Takeaway
Paxos’ compliance-first innovation, reinforced by Solidus Labs, sets the blueprint for how on-chain finance can scale responsibly under global regulatory frameworks.
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