Paxos Labs has announced the closure of a $12 million strategic funding round led by Blockchain Capital and the launch of Amplify, a digital asset utility suite that allows platforms to turn customer-held digital assets into active financial products through a single integration.
Funding Details and Investors
The round also saw participation from Robot Ventures, Maelstrom, and Uniswap. Paxos Labs was incubated within Paxos, a regulated digital asset infrastructure provider that has processed over $180 billion in tokenization activity for major financial institutions over the past decade. The new entity builds on top of that infrastructure, giving platforms a direct path to monetize the digital assets they hold.
Amplify’s Three Core Modules
Amplify launches with three live modules: Earn, which offers institutional-grade yield on digital assets; Borrow, which provides digital asset-backed lending; and Mint, which enables platforms to issue branded stablecoins. Partners integrate once via a single SDK and can activate any combination of modules. Each module carries independently configurable parameters, while Paxos Labs handles liquidity, counterparty vetting, and enterprise controls behind the scenes. The platform also distributes a portion of the underlying revenue directly back to integrating partners.
Early Partner Success
Several platforms are already live on Amplify, including Aleo, Hyperbeat, and Toku. Hyperbeat crossed $510,000 in assets under management (AUM) just days after going live on April 9, 2026, demonstrating strong initial market traction.
Executive Perspectives and Market Significance
“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 to make those assets productive.” Paxos CEO Chad Cascarilla added: “Paxos Labs is building the onchain product layer that programmatically makes digital assets productive for any platform.” Spencer Bogart, general partner at Blockchain Capital, commented: “The infrastructure problem is largely solved. The product problem — what users and platforms actually do with these assets onchain — is the largest open opportunity in fintech today.”
Paxos previously secured conditional approval for its national trust bank charter and launched the USAD digital dollar token in partnership with the Aleo Network Foundation in February 2026. Paxos Labs has not disclosed a timeline for additional module releases but continues to expand the Amplify ecosystem.