Particle.news
Download on the App Store

Paxos Labs Spins Off With $12 Million to Power Enterprise Stablecoins

The move targets companies seeking compliant digital dollars with direct links to on-chain lending.

Overview

  • Paxos Labs raised $12 million Tuesday in a round led by Blockchain Capital, with Robot Ventures, Maelstrom, and Uniswap Labs participating.
  • The spin-off builds white-label software for large companies to issue their own dollar-pegged tokens and to route those balances into on-chain lending markets such as Aave for interest or collateral.
  • Paxos CEO Chad Cascarilla leads the unit, which separated to pursue DeFi integrations under fewer constraints than the parent’s near-term plan.
  • The company reports early customers including the neobank Hyperbeat and developers of the Aleo blockchain and says it expects to break even by year-end, while the valuation remains undisclosed.
  • The push follows Paxos agreeing to buy crypto wallet firm Fordefi for more than $100 million as more clients seek secure, direct access to decentralized finance.