Paxos spinout raises $12M

Paxos Labs, a startup spun out of Paxos, raised $12 million and launched a product for companies that want to offer crypto yield, lending, and stablecoins. (prnewswire.com) The round was led by Blockchain Capital, with participation from Robot Ventures, Maelstrom, and Uniswap, according to Paxos Labs’ April 14 announcement. Paxos Labs said all three parts of its new Amplify suite — Earn, Borrow, and Mint — are already live. (prnewswire.com) Amplify is built for fintech and crypto apps that want one software connection instead of wiring together separate tools for lending, yield, and stablecoin issuance. Paxos Labs said it handles liquidity, counterparty vetting, and enterprise controls behind the scenes. (theblock.co) Paxos Labs grew out of Paxos, the regulated blockchain infrastructure company behind PayPal USD, a dollar-backed stablecoin issued by Paxos. Paxos also says it has powered more than $180 billion in tokenization activity for large financial institutions. (paxos.com) (prnewswire.com) The split shows how crypto firms are separating basic plumbing from higher-risk financial products. Bhau Kotecha, a cofounder of Paxos Labs, told Yahoo Finance the software did not fit Paxos’ short-term, institution-focused roadmap and that decentralized finance rules were still unclear. (finance.yahoo.com) Stablecoins are crypto tokens designed to track assets like the U.S. dollar, and they have become a core way to move money across blockchains. The Federal Reserve Bank of Kansas City said this month that stablecoins are still used mostly inside crypto finance, not mainstream payments. (kansascityfed.org) That helps explain the pitch for Amplify. Instead of asking a platform to issue a token and stop there, Paxos Labs is selling tools that let customers earn yield on holdings, borrow against crypto, or launch a branded stablecoin inside the same app. (prnewswire.com) (theblock.co) Paxos has been pushing deeper into that stack for months. On November 25, 2025, it said it acquired wallet and custody company Fordefi, which Paxos said was used by nearly 300 institutions. (paxos.com) Other financial firms are making similar bets on stablecoin infrastructure. Stripe said in April 2025 that it would support two dollar-denominated stablecoins, and CNBC reported in February 2025 that Stripe had closed its $1.1 billion acquisition of Bridge. (stripe.com) (cnbc.com) For Paxos Labs, the bet is that companies already holding digital assets will want to turn those balances into financial products. Blockchain Capital partner Spencer Bogart told Yahoo Finance there is “a bit of a gap in the market there.” (finance.yahoo.com)