Paxos Labs has raised $12 million in a funding round led by Blockchain Capital to expand its Amplify platform for crypto yield, lending and stablecoin issuance.
The Amplify suite combines three modules—Earn, Borrow and Mint—allowing platforms to generate yield, offer crypto-backed loans and issue branded stablecoins through a single integration.
The company said the platform provides a unified SDK while Paxos manages liquidity, counterparty risk and backend operations, sharing revenue with partners.
Partners including Aleo, Hyperbeat and Toku are already using the system, with Hyperbeat reporting more than $510,000 in assets under management since launch.
Paxos Labs operates within Paxos, which has processed over $180 billion in tokenisation volume, highlighting its institutional reach.
The launch targets platforms seeking to monetise idle user assets, as exchanges like Kraken and Coinbase expand yield and lending offerings.
The funding comes as policymakers debate yield-bearing digital assets, with banking groups warning such products could shift deposits away from traditional banks and reshape lending markets.