Paxos Labs Raises $12 Million, Launches Amplify Stablecoin and DeFi Platform for Enterprise Clients
Summary
Paxos Labs, a startup incubated within Paxos and spun off to pursue DeFi-focused products, has raised $12 million in a strategic round led by Blockchain Capital, with participation from Robot Ventures, Arthur Hayes’ family office Maelstrom, and Uniswap Labs.
The funding accompanies the launch of Amplify, a software stack — delivered via a single SDK, or software development kit — that lets enterprise clients such as fintech apps and crypto platforms offer yield, crypto-backed borrowing, and branded stablecoins without building the underlying infrastructure themselves. The bet is that regulated compliance and liquidity management, handled entirely by Paxos Labs on the backend, can function as a durable moat in a market where most DeFi tooling remains permissionless and ungated.
Amplify operates through three independently configurable modules: Earn, Borrow, and Mint. Partners already live on the platform include neobank Hyperbeat, which crossed $510,000 in assets under management within its first week of integration. Paxos Labs said its revenue-sharing model ties its own growth directly to partner activity across all three modules.
The spin-off originated when co-founder Bhaumik Kotecha’s work on DeFi integrations at Paxos — including tooling to connect enterprise clients to protocols like Aave — didn’t fit Paxos’ institution-first roadmap. Paxos CEO Chad Cascarilla remains directly involved with the Labs entity. Valuation and round structure were not disclosed.
Paxos Labs said it is on track to break even by year-end, with proceeds earmarked for engineering hires and continued R&D. Paxos separately agreed to acquire crypto wallet firm Fordefi for more than $100 million, signaling broader ambitions to deepen enterprise DeFi access across the group.