Paxos Labs Raises $12M to Expand Amplify Platform

Paxos Labs announced Tuesday it raised $12 million in a strategic funding round led by Blockchain Capital to expand Amplify, a single-integration platform that lets companies offer crypto yield, lending and branded stablecoin issuance through one software development kit.

Amplify combines three modules — Earn, Borrow and Mint — that enable platforms to generate yield on digital assets, provide crypto-backed loans and issue branded stablecoins via a single SDK with configurable controls. Paxos Labs handles liquidity management, counterparty vetting and backend operations, and shares a portion of revenue generated with partners that integrate the platform.

The financing included participation from Robot Ventures, Maelstrom and Uniswap. Paxos Labs plans to use the funds to grow Amplify’s capabilities and support additional partners integrating the platform. Paxos Labs operates as an incubated unit within Paxos, which the company reports has processed more than $180 billion in tokenization volume for institutional clients.

Aleo, Hyperbeat and Toku are among early partners using Amplify. Hyperbeat reported more than $510,000 in assets under management after launching on April 9.

Amplify is aimed at companies that already offer crypto custody or trading and want to turn idle digital-asset balances into revenue-generating products by adding yield and lending services without building the full infrastructure themselves.

The raise comes as crypto firms broaden product lines beyond custody and spot trading. Recent industry activity includes exchanges and providers adding structured products, tokenized yield funds and onchain lending integrations. Institutional providers have announced tools to let clients borrow against staked assets without moving them and to offer yield and borrowing against Bitcoin using onchain lending infrastructure.

Regulatory discussions have followed the growth of yield-bearing crypto products. Lawmakers have debated the Digital Asset Market Clarity Act and other proposals to define digital-asset services in the United States. The American Bankers Association has warned that allowing yield on stablecoins could increase deposit outflows from smaller banks, affecting funding costs and local lending.