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CoinDesk1 min read
Paxos Labs to use $12M raise toward yield, lending, issuance tools
TL;DR
Paxos Labs has raised $12 million to enhance its Amplify platform, which offers tools for crypto yield, lending, and stablecoin issuance. The funding round was led by Blockchain Capital and aims to improve integration for partners like Aleo and Hyperbeat.
Key points
- Paxos Labs raised $12 million in funding.
- Funding will enhance the Amplify platform for crypto services.
- Partners include Aleo, Hyperbeat, and Toku.
Paxos LabsBlockchain CapitalAleoHyperbeat
Paxos Labs has raised $12 million in a strategic funding round led by Blockchain Capital to expand its Amplify platform, a suite of tools that lets companies offer crypto yield, lending and stablecoin issuance through a single integration.
The Amplify suite includes three modules — Earn, Borrow and Mint — allowing platforms to generate yield on digital assets, enable crypto-backed loans and issue branded stablecoins with a single integration designed to unlock additional features over time.
According to Tuesday’s announcement, the platform provides a single SDK with configurable controls, while Paxos Labs manages liquidity, counterparty vetting and backend operations, and shares a portion of generated revenue with integrating partners.
The company said partners including Aleo, Hyperbeat and Toku are already using the platform, with Hyperbeat reporting more than $510,000 in assets under management since launching on April 9. The raise also included participation from Robot Ventures, Maelstrom and Uniswap.
Paxos Labs operates as an incubated unit within Paxos, which has processed more than $180 billion in tokenization volume for institutional clients, according to the company.
The launch targets platforms already offering crypto custody or trading, positioning the tools as a way to turn passive digital asset balances into active, revenue-generating financial products.
Related: Coinbase USDC revenue may multiply 7x as payments grow, Bloomberg says
Crypto platforms expand yield and lending offerings for user-held assets
Crypto platforms have been expanding beyond custody and trading as they look to generate additional revenue from user-held digital assets.
In March, Kraken integrated a structured products platform from STS Digital, enabling options-based strategies designed to generate fixed returns on Bitcoin (BTC) and Ether (ETH). Also last month, Coinbase introduced a tokenized share class of its Bitcoin Yield Fund on its Base network, offering institutional investors onchain access to yield-bearing crypto exposure.
Both crypto exchanges also offer yield on stablecoin deposits, allowing users to earn returns on assets that would otherwise remain idle, including through integrations with onchain lending markets.
Q&A
What is the purpose of Paxos Labs' $12 million funding?
The funding will be used to expand the Amplify platform, which provides tools for crypto yield, lending, and stablecoin issuance.
Which companies are currently using the Amplify platform?
Partners using the Amplify platform include Aleo, Hyperbeat, and Toku, with Hyperbeat managing over $510,000 in assets since its launch.
Who led the funding round for Paxos Labs?
The funding round was led by Blockchain Capital, with participation from Robot Ventures, Maelstrom, and Uniswap.
