Paxos Labs has raised $12 million in a strategic funding round to scale its onchain financial product offerings and launch its new 'Amplify' platform. The funding round was led by Blockchain Capital, with participation from Robot Ventures, Uniswap, and Maelstrom, the family office of Arthur Hayes.
Incubated within Paxos last year, the startup focuses on providing enterprise clients with the infrastructure needed to deploy onchain financial services. Co-founder Bhau Kotecha told The Block that the investment from Blockchain Capital was a natural extension of a long-standing shared thesis regarding regulated digital asset infrastructure.
Kotecha did not disclose the company's valuation, board seat changes, or the specific structure of the funding round.
The Amplify platform
Alongside the capital injection, Paxos Labs introduced Amplify, a technical stack designed for fintechs and crypto applications. The platform enables clients to move beyond simple digital asset holding by integrating yield, borrowing, and stablecoin services through a single software development kit (SDK).
The Amplify stack consists of three specific modules: Earn, Borrow, and Mint. These modules allow developers to offer interest-bearing assets, crypto-backed lending, and branded stablecoins within their existing applications.
"The infrastructure problem is largely solved. The product problem... is the largest open opportunity in fintech today," said Spencer Bogart, general partner at Blockchain Capital.
According to the company, the Amplify SDK allows for easy deployment by managing liquidity, counterparty vetting, and enterprise-led controls behind the scenes. Each module features independently configurable parameters to suit specific client needs.
Paxos Labs operates on a revenue-sharing business model. Under this structure, both the client platform and Paxos Labs earn fees when users engage with the integrated yield, borrowing, or stablecoin services.
