Paxos has laid off 65 employees, or roughly 20% of its staff, the crypto firm’s CEO, Chad Cascarilla, told employees last week in an email seen by The Block.

The move “allows us to best execute on the massive opportunity ahead in tokenization and stablecoins,” Cascarilla wrote.

“Stablecoins will 10x in the coming years and serve as the fulcrum for opening the financial system through tokenization,” he wrote. “We will continue to consolidate focus on our core offering and de-prioritize adjacencies.”

With the move, Paxos plans to phase out its settlement services in commodities and securities, and boost its focus on tokenization of assets and on stablecoins, a person familiar with the situation told Bloomberg.

Paxos offered affected employees 13 weeks of severance pay, three months of subsidized health insurance, three months of outplacement support and a two-year extension to exercise vested options, Cascarilla wrote, according to The Block.

The company also gave second-quarter bonuses to employees who were on a quarterly incentive program, as well as payments and benefits to workers with approved parental or medical leave, along with the separation package, the publication reported.

“This is a tough day,” Cascarilla wrote, according to Bloomberg. “I take responsibility for this decision and regret having to take this course.”

Cascarilla, however, noted that the company has more than $500 million on its balance sheet, adding that Paxos is “in a very strong financial position to succeed."

The layoffs come roughly a week after Paxos launched the yield-bearing stablecoin Lift Dollar. But, Cascarilla wrote, “launching and scaling new regulated tokens takes time.”