Paxos Labs has closed a $12 million strategic financing round led by Blockchain Capital to broaden Amplify, its modular suite that lets platforms add crypto yield, lending and branded stablecoin issuance through one integration.
Amplify is built around three modules — Earn, Borrow and Mint — which enable partners to generate yield on digital assets, offer crypto-backed loans and issue programmable stablecoins. Paxos Labs supplies a single SDK with configurable controls while handling liquidity management, counterparty vetting and backend operations. Partners can integrate the stack and share in a portion of the revenue produced.
Paxos Labs said several customers are already live on Amplify, including Aleo, Hyperbeat and Toku. Hyperbeat reported more than $510,000 in assets under management after launching on April 9. Other investors in the round included Robot Ventures, Maelstrom and Uniswap.
Operating as an incubated unit inside Paxos, Paxos Labs pointed to the parent company’s institutional scale — Paxos has processed more than $180 billion in tokenization volume — as a foundation for Amplify’s trust and infrastructure. The product is aimed at platforms that already provide custody or trading, offering a way to turn idle digital asset balances into active, revenue-generating services.
The launch arrives as exchanges and institutional providers broaden offerings beyond custody and spot trading to capture additional returns on user-held assets. In recent months Kraken added structured products from STS Digital to deliver options-based strategies for Bitcoin and Ether, and Coinbase introduced a tokenized share class of its Bitcoin Yield Fund on its Base network. Both exchanges also provide yield products on stablecoin deposits through onchain lending integrations.
Institutional custody firms are similarly extending lending and yield options. Anchorage Digital announced work with Kamino and the Solana Company to let institutions borrow against staked Solana without moving custody, and Lombard teamed with Bitwise Asset Management to enable yield and borrowing against Bitcoin via onchain lending rails.
The growth of yield-bearing crypto products has attracted policy scrutiny. The proposed Digital Asset Market Clarity Act seeks to clarify the U.S. regulatory framework for digital assets, and the American Bankers Association has warned that permitting stablecoin yield could accelerate deposit outflows from smaller banks, raising funding costs and constraining local lending.
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