Paxos Labs has closed a $12 million strategic funding round led by Blockchain Capital and launched Amplify, a product suite that lets platforms turn digital asset holdings into active financial products through one integration.
Key Takeaways:
Paxos Labs was incubated within Paxos, which has processed more than $180 billion in tokenization activity for large financial institutions over the past decade. The announcement shared with Bitcoin.com News said the new entity is built to sit on top of that infrastructure and give platforms a direct path to monetizing the digital assets they hold.
Robot Ventures, Maelstrom, and Uniswap joined Blockchain Capital in the round. The capital will go toward expanding the Amplify Suite, which launched three live modules: Earn, Borrow, and Mint.
Earn offers institutional-grade yield on digital assets. Borrow provides digital asset-backed lending. Mint enables platforms to issue branded stablecoins. Partners integrate once and add capabilities from there.
“Platforms have spent years enabling users to hold digital assets,” said Bhau Kotecha, co-founder of Paxos Labs. “Amplify is the infrastructure that makes it possible through a single integration.”
A single SDK activates the full suite within any application. Each module carries independently configurable parameters, while Paxos Labs handles liquidity, counterparty vetting, and enterprise controls behind the scenes. The platform distributes a portion of the underlying revenue directly back to integrating partners.
Paxos CEO Chad Cascarilla framed the launch as an extension of the company’s original mission. Cascarilla remarked:
“Paxos Labs is building the onchain product layer that programmatically makes digital assets productive for any platform.”
Spencer Bogart, general partner at Blockchain Capital, cited the product gap the firm expects Amplify to close. “The infrastructure problem is largely solved,” he said. “The product problem, what users and platforms actually do with these assets onchain, is the largest open opportunity in fintech today.”
Blockchain Capital was an early investor in Paxos before leading this round. The firm’s continued involvement reflects a decade-long bet on regulated digital asset infrastructure. Aleo, Hyperbeat, and Toku are already live on the Amplify platform. Hyperbeat crossed $510,000 in assets under management (AUM) just days after going live on April 9, 2026.
The company did not disclose a timeline for additional module releases or name future integration partners beyond those already live. Last year, Paxos secured conditional approval for its national trust bank charter application, and in Feb., the team announced alongside the Aleo Network Foundation that it was launching a digital dollar token called USAD.
