Avax Added to Paxos Crypto Brokerage Infrastructure for Institutional Access

Avalanche (AVAX) has been added to Paxos' Crypto Brokerage trading and custody infrastructure. This provides financial institutions and fintech companies with a new regulatory-compliant pathway to offer AVAX services. Paxos announced on July 15, 2026, that it would add AVAX as a native asset supporting both trading and custody functions, bringing the total supported assets to 29.

Crypto Brokerage enables financial firms to provide virtual asset trading and storage services without building their own exchange or custody systems from scratch. Paxos previously stated in April 2026 that its platform would offer integrated trading, custody, and settlement capabilities through a single environment, supporting multi-counterparty smart routing and order-level audit trails.

The significance of this move extends beyond AVAX's inclusion on the tradable asset list. It now allows banks, brokers, dealers, and fintech firms to explore AVAX trading and storage via regulated infrastructure. Paxos operates as a federally chartered trust bank supervised by the U.S. Office of the Comptroller of the Currency (OCC), as a major payment institution under Singapore's Monetary Authority (MAS), and as an electronic money institution regulated by Finland's Financial Supervisory Authority (FIN-FSA).

The connection to payment infrastructure is through Avalanche Payments Collective, which launched in June 2026. Avalanche's official announcement noted that Paxos was among 28 organizations building stablecoin issuance, payments, treasury management, foreign exchange, custody, and cross-border payment infrastructures. These supported networks reach over 150 countries, 96 currencies, and approximately 2.2 billion payment endpoints—referring to points where funds can be received, such as bank accounts, cards, or mobile wallets.

It's important to note that these figures represent the potential reach of the infrastructure built by participating organizations, not the actual transaction volume processed on Avalanche's network. The article clarifies that there is no confirmation yet of institutional fund inflows or increased AVAX trading volume as a result of this integration. Neither the actual custody balances nor the scale of institutional usage has been disclosed. It also remains unclear whether Paxos' clients have actually launched services utilizing AVAX.

The addition of AVAX to the platform's infrastructure demonstrates that traditional financial institutions can leverage external infrastructure for virtual asset trading and custody without building separate systems. However, actual service provision will depend on client business decisions and regulatory scope in each jurisdiction. This development aligns with broader trends of connecting traditional banking accounts with cryptocurrency services through expanding infrastructure.