Summary:
Paxos Labs enables institutions to integrate DeFi products into their platforms with ease
Offers tools for creating custom-branded stablecoins, onchain yield strategies, and tokenized asset management
Leverages Paxos' regulatory expertise and enterprise-grade infrastructure for safe and compliant financial systems
Targets consumer fintech apps, exchanges, and blockchain networks as primary customers
Aims to become the default infrastructure layer for onchain financial products globally
Paxos Labs: Bridging Institutions with DeFi
Paxos has officially launched Paxos Labs, a groundbreaking startup designed to empower institutions with the tools to integrate DeFi products directly into their platforms. This initiative marks a significant step towards mainstream adoption of decentralized finance by simplifying the complexity of DeFi for traditional financial entities.
What Paxos Labs Offers
- Custom-branded stablecoins: Institutions can now issue their own stablecoins, backed by reserves like Global Dollar (USDG), Lift Dollar (USDL), or PayPal USD (PYUSD).
- Onchain yield strategies: Platforms can offer dollar-denominated products that earn passive yield without requiring users to interact directly with DeFi protocols.
- Tokenized asset management: A suite of tools for managing structured digital assets, enhancing capital retention and user engagement.
The Vision Behind Paxos Labs
Incubated within Paxos over the past six months, Paxos Labs responds to the growing demand from companies eager to tap into DeFi markets and real-world asset opportunities. According to Bhau Kotecha, co-founder and head of Paxos Labs, the startup is building easy-to-integrate APIs that abstract the inherent complexities of DeFi, making it accessible to a broader audience.
"Our goal is to make Paxos Labs the default infrastructure layer for onchain financial products across the world," Kotecha stated. The startup aims to become a one-stop shop for institutions looking to enhance user engagement, retention, and monetization through onchain products.
Competitive Edge
Unlike other players in the space focusing on custody or direct access to DeFi protocols, Paxos Labs distinguishes itself by providing APIs and infrastructure that enable platforms to offer branded onchain products to their end users. This approach leverages Paxos' regulatory expertise and enterprise-grade infrastructure to ensure safety and compliance.
With a team of over a dozen professionals from financial services and crypto backgrounds, Paxos Labs is poised for expansion, particularly in engineering and marketing roles. The startup's leadership includes Paxos CEO Charles "Chad" Cascarilla, underscoring its strategic importance to Paxos' broader ecosystem.
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