TL;DR
- Paxos launched Labs to help institutions integrate DeFi products and tokenized assets into their platforms through easy-to-use APIs.
- The platform enables fintechs and exchanges to issue custom stablecoins, manage structured digital assets, and offer yields.
- The startup aims to become the global default infrastructure for onchain financial products.
Paxos launched Labs, a new startup designed to help institutions integrate decentralized finance (DeFi) products and tokenized assets directly into their platforms. This initiative emerged after six months of internal development, driven by growing demand from companies seeking to connect with DeFi markets without handling the technical complexity involved.
Paxos Labs develops APIs that allow fintechs, exchanges, and blockchain networks to issue custom stablecoins, offer onchain yield strategies, and manage structured digital assets. This way, a financial platform can create a branded stablecoin or provide its users with the ability to earn yields in dollars, bitcoin, or ethereum, without having to interact directly with DeFi protocols.
Among the options for custom stablecoins, institutions can tokenize collateral in fiat currency or stablecoins through issuers like Global Dollar, Lift Dollar, or PayPal USD, backed by different Paxos subsidiaries. While Labs works with multiple issuers, its offering relies on Paxos’ regulatory expertise and its secure, enterprise-grade infrastructure.
Paxos Aims to Become the Structural Base of an Onchain Financial System
Unlike companies focused on asset custody or direct access to DeFi protocols, Paxos Labs provides tools for platforms to create their own onchain financial products and offer them to users. This simplifies the user experience by hiding the complexity of the DeFi ecosystem and enabling product expansion.
Paxos Labs aims to become the default infrastructure layer for onchain financial products worldwide, facilitating institutional adoption. The startup currently has a team of over a dozen specialists in finance and blockchain technology and plans to expand, particularly in engineering and marketing.
Bhau Kotecha, co-founder and head of Labs, together with Chad Cascarilla, the company’s CEO, lead this initiative focused on enabling companies and institutions to offer innovative, secure, and regulated DeFi products
