Paxos Labs has raised $12 million in a strategic funding round led by Blockchain Capital to expand its Amplify platform, a suite of tools that allows companies to offer cryptocurrency yield, lending and stablecoin issuance in a single integration.
The Amplify suite includes three modules – Earn, Lend, and Mint – enabling platforms to generate yield on digital assets, enable cryptocurrency-collateralized lending, and issue branded stablecoins with a single integration designed to unlock additional features over time.
According to Tuesday announcementthe platform provides a single SDK with customizable controls, while Paxos Labs manages liquidity, counterparty verification and back-end operations, and shares a portion of generated revenue with integration partners.
The company said partners including Aleo, Hyperbeat and Toku are already using the platform, and since its launch on April 9, Hyperbeat has more than $510,000 in assets under management. The enhance also included the participation of Robot Ventures, Maelstrom and Uniswap.
Paxos Labs operates as an incubated unit within Paxos, which the company says has processed over $180 billion in tokenization for institutional clients.
The launch is aimed at platforms that already offer cryptocurrency custody or trading, positioning the tools as a way to transform passive digital asset balances into dynamic, revenue-generating financial products.
Related: Bloomberg says Coinbase USDC revenue could enhance sevenfold as payments grow
Crypto platforms are expanding their yield and lending offerings for assets held by users
Cryptocurrency platforms go beyond custody and trading services as they look to generate additional revenue from digital assets held by users.
In March, Kraken integrated STS Digital’s structured products platform, enabling options-based strategies designed to generate consistent returns on Bitcoin (BTC) and Ether (ETH). Also last month, Coinbase introduced a tokenized share class of its Bitcoin Yield Fund on its Base network, offering onchain institutional investors access to income-producing cryptocurrency exposure.
Both cryptocurrency exchanges also offer yield on stablecoin deposits, enabling users to earn returns on assets that would otherwise remain idle, including through integration with onchain lending markets.
Institutional-focused providers also provide loans against held assets. In February, Anchorage Digital said it would partner with Kamino and Solana Company to enable institutions to borrow against staked Solana (SOL) without transferring assets, while in March Lombard partnered with Bitwise Asset Management to offer yield and lending against Bitcoin using onchain lending infrastructure.
Meanwhile, the debate over profitable crypto products has expanded into policy discussions centered around the Digital Asset Market Clarity Act, a proposal aimed at establishing a regulatory framework for digital assets in the US.
The American Bankers Association said Monday that allowing stablecoins to remain viable could accelerate the outflow of deposits from smaller banks, raising financing costs and reducing local lending.
Warehouse: The Clarity Act risks repeating Europe’s mistakes, a cryptocurrency lawyer warns
