Nikolas Sargeant
TL;DR
- Paxos Labs raised $12 million in strategic funding led by Blockchain Capital to launch its flagship product, Amplify.
- The platform helps enterprise clients integrate onchain financial products like yield generation, crypto-backed lending, and branded stablecoins.
Paxos Labs Secures $12 Million in Funding and Launches Amplify
Paxos Labs, a spin-off incubated within Paxos, has raised $12 million in a strategic funding round. The funds would help the company to accelerate its mission of helping enterprise clients integrate onchain financial products.
The funding round was led by Blockchain Capital, with additional backing from Robot Ventures, Arthur Hayes' family office Maelstrom, and Uniswap.
Paxos Labs co-founder Bhau Kotecha revealed that the fundraising process was unconventional, as Blockchain Capital had been an early investor in Paxos, making the partnership a natural extension of their long-standing collaboration.
While commenting on the funding round, Spencer Bogart, General Partner at Blockchain Capital, stated that the infrastructure problem for digital assets is largely solved, and the real opportunity now lies in creating financial products that effectively utilize these assets onchain. He believes Paxos Labs is the team to tackle this challenge.
Paxos Labs Launches Amplify Stack
In addition to the funding round, Paxos Labs also launched Amplify, its flagship product. Amplify is a technical stack that enables enterprise clients, including fintech and crypto apps, to integrate onchain products beyond merely holding digital assets.
The Amplify stack consists of three modules: Earn, Borrow, and Mint, which allow clients to offer yield on digital assets, facilitate crypto-backed lending, and launch branded stablecoins—all via a single integration.
This product is designed for easy deployment with a single SDK (software development kit) that activates the entire suite within any application. Paxos Labs manages liquidity, counterparty vetting, and enterprise-led controls behind the scenes, making the process seamless for clients.
Paxos Labs explained that it follows a revenue-sharing business model. When clients integrate Amplify and their users engage with its modules, both the platform and Paxos Labs generate revenue from the activity.
Paxos Labs revealed that partners like Aleo, Hyperbeat, and Toku are already live on the platform. Hyperbeat, in particular, has crossed $510,000 in assets under management since its launch just a week ago.
In the future, Paxos Labs intends to scale its go-to-market efforts and continue investing in R&D for future digital asset solutions.
Paxos Labs is closely supported by Paxos CEO Chad Cascarilla, and its co-founders include Chunda McCain and Jun Kim.
