Paxos Labs has raised $12 million in a strategic funding round and launched Amplify, a new onchain financial product platform aimed at enterprises. The round was led by Blockchain Capital, with participation from Robot Ventures, Maelstrom, and Uniswap, the company said.
One platform for yield, borrowing, and stablecoins
Amplify is a full-stack software platform that lets enterprise clients plug into three core services through a single integration:
- Earn – access to digital asset yield products
- Borrow – loans backed by crypto collateral
- Mint – issuance of branded stablecoins
These modules are delivered via one software development kit (SDK), designed for quick deployment into partner applications.
Paxos Labs handles liquidity management, counterparty vetting, and compliance behind the scenes, aiming to standardize operations and reduce regulatory and technical friction for its partners.
Revenue sharing with enterprise clients
The platform runs on a revenue-sharing model: Paxos Labs shares fees with its enterprise users when they use the Earn, Borrow, or Mint modules.
Current partners include Aleo, Hyperbeat, and Toku. Hyperbeat, an early adopter, has already onboarded about $510,000 in assets since its launch last week.
Use of funds and team expansion
Co-founder Kotecha said the fresh capital will be used to expand go-to-market efforts and fund research and development for new products. Hiring will focus on engineering and commercial roles to support scaling the technology and business operations.
Paxos Labs was formed within Paxos last year and sits on top of Paxos’s existing infrastructure, turning it into product-level tools for digital asset operations. Paxos chief executive Charles Cascarilla is directly overseeing the initiative. McCain and Kim, known for previously co-founding Ion Protocol, serve as co-founders alongside Kotecha.
Simplifying complex onchain finance for businesses
With this funding, Paxos Labs aims to package complex onchain financial operations into a single, compliant toolkit for enterprises. By managing regulatory requirements and liquidity challenges internally, the company positions Amplify as a way for established firms to offer crypto-native services—such as yield generation and stablecoin issuance—without building their own onchain architecture.
Stablecoin and yield demand underpin strategy
The launch of the Mint module comes as the total stablecoin market capitalization has recently surpassed $250 billion, underscoring rising demand for dollar-pegged assets on public blockchains.
Amplify’s Earn module targets growing interest in digital asset yield. A recent Coalition Greenwich report found that 45% of institutional asset managers are either exploring or already using digital asset yield strategies.
How much liquidity flows through Amplify will depend on which enterprises choose to integrate the technology. If adoption grows, assets moving onto these regulated rails could be redirected from existing decentralized protocols.
Potential for a more fragmented stablecoin landscape
By enabling almost any enterprise to issue its own branded stablecoin, Amplify could contribute to a more fragmented but larger and more specialized stablecoin market. This could drive niche, application-specific stablecoins that sit alongside the current large, general-purpose tokens.
Positioning versus defi protocols
Paxos Labs is pursuing a business-to-business model that contrasts with permissionless defi platforms. Defi protocols today collectively hold about $180 billion in total value locked, according to on-chain data.
Cascarilla’s team is targeting businesses that are cautious about interacting directly with open, permissionless systems but still want access to digital asset services. If successful, this approach could channel a distinct stream of institutional and corporate activity into regulated, enterprise-focused onchain infrastructure.
Want deeper context on yield and tokenized finance? Explore why real-world assets (RWAs) matter for the next wave of onchain products.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our terms of service and risk disclosure.
