Paxos Labs raises $12M
A Paxos spin‑out called Paxos Labs closed a $12 million financing round as it separates from the stablecoin issuer Paxos, signaling investor interest in companies focused on blockchain infrastructure rather than token products. The raise was reported April 14 and names Paxos CEO Charles Cascarilla as a leader of the new venture, showing continuity between the parent company and the spin‑out’s leadership. (fortune.com)
Paxos Labs has raised $12 million as it spins out from Paxos and pushes deeper into blockchain plumbing for other companies. (prnewswire.com) The round was led by Blockchain Capital, with Robot Ventures, Maelstrom and Uniswap also participating, according to Paxos Labs’ April 14 announcement. Yahoo Finance reported the deal the same day and said the company declined to disclose its valuation. (prnewswire.com) (finance.yahoo.com) Charles Cascarilla, the co-founder and chief executive of Paxos, is also leading Paxos Labs, and Bhau Kotecha is listed as a co-founder of the new venture. Paxos Labs said it was incubated inside Paxos before separating into its own company. (prnewswire.com) (finance.yahoo.com) Paxos Labs is selling software that lets a platform plug in once and then offer three services: yield on digital assets, crypto-backed borrowing and branded stablecoin issuance. The company calls that product suite Amplify. (prnewswire.com) That setup draws a line between the two companies. Paxos says it handles the regulated rails for moving and tokenizing assets on blockchain networks, while Paxos Labs is building the product layer that sits on top and turns those assets into customer-facing financial features. (prnewswire.com) Paxos already has a foothold with large financial and consumer brands. The company says it issues PayPal USD, and it has previously said it works with PayPal, Nubank and Mercado Libre on blockchain infrastructure. (paxos.com 1) (paxos.com 2) The spinout comes after years of pressure on stablecoin issuers to prove they can operate inside financial rules. Paxos said this week that Paxos Trust Company, National Association is now overseen at the national level by the Office of the Comptroller of the Currency, adding to the company’s long-running pitch that regulation is part of its business model. (paxos.com 1) (paxos.com 2) Paxos Labs is pitching a narrower bet than a consumer crypto app. Its April 14 release says partners can use one software development kit to add yield, lending or stablecoin tools, while Paxos Labs manages liquidity, counterparty checks and enterprise controls behind the scenes. (prnewswire.com) Paxos says it was founded in 2012, and Cascarilla said this week the company has supported more than $180 billion in tokenization activity. The new raise suggests investors still see room to fund crypto companies that sell infrastructure to institutions, even after a long stretch of scrutiny around token businesses themselves. (cbinsights.com) (prnewswire.com)
