Paxos Labs has raised $12 million in a strategic round led by Blockchain Capital to expand Amplify, a platform suite that lets companies add crypto yield, lending and branded stablecoin issuance via a single integration.
Amplify consists of three modules — Earn, Borrow and Mint — enabling platforms to generate yield on digital assets, offer crypto-backed loans and issue stablecoins. Paxos Labs provides a single SDK with configurable controls while managing liquidity, counterparty vetting and backend operations, and shares a portion of generated revenue with partners.
The company said partners including Aleo, Hyperbeat and Toku are already using Amplify; Hyperbeat reported more than $510,000 in assets under management since launching on April 9. Other participants in the funding round included Robot Ventures, Maelstrom and Uniswap.
Operating as an incubated unit within Paxos, Paxos Labs noted Paxos has processed more than $180 billion in tokenization volume for institutional clients. Amplify is aimed at platforms that already offer custody or trading, positioning the tools as a way to convert idle digital asset balances into active, revenue-generating products.
The launch comes as crypto platforms broadly expand services beyond custody and trading to capture additional revenue from user-held assets. In March, Kraken integrated a structured products platform from STS Digital to offer options-based strategies targeting fixed returns on Bitcoin and Ether. Coinbase introduced a tokenized share class of its Bitcoin Yield Fund on its Base network, offering institutional onchain access to yield-bearing exposure. Both exchanges also provide yield on stablecoin deposits, including through integrations with onchain lending markets.
Institutional-focused providers are similarly extending lending against assets held in custody. Anchorage Digital said it will work with Kamino and Solana Company to let institutions borrow against staked Solana without moving custody, and Lombard partnered with Bitwise Asset Management to offer yield and borrowing against Bitcoin using onchain lending infrastructure.
Debate over yield-bearing crypto products has also entered policy discussions around the proposed Digital Asset Market Clarity Act, which seeks to establish a regulatory framework for digital assets in the U.S. The American Bankers Association warned that allowing stablecoin yield could accelerate deposit outflows from smaller banks, raising funding costs and reducing local lending.
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