{"id":589408,"date":"2026-04-16T00:00:12","date_gmt":"2026-04-16T04:00:12","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=589408"},"modified":"2026-04-15T09:08:56","modified_gmt":"2026-04-15T13:08:56","slug":"paxos-labs-raises-12mln-to-solve-this-defi-product-problem","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/","title":{"rendered":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019"},"content":{"rendered":"

Paxos Labs has raised $12 million to solve what the project calls DeFi’s \u2018product problem.\u2019 Notably, Paxos Labs is a spin-off of the crypto infrastructure firm Paxos.\u00a0<\/span><\/p>\n

Through its new Amplify, Paxos Labs believes it can make it super easy for users to earn yield, borrow, and lend assets at scale.\u00a0<\/span><\/p>\n

In a statement, Spencer Bogart, general partner at Blockchain Capital, an early investor and one of the key firms that led the latest fundraising round, said,<\/span><\/p>\n

The infrastructure problem is largely solved. The product problem, what users and platforms actually do with these assets on-chain, is the largest open opportunity in fintech today, and this is the team to build it.<\/span><\/p><\/blockquote>\n

For the unfamiliar, Paxos is a white-label issuer or simply a service provider that helps other firms to create and manage their branded stablecoins.\u00a0<\/span><\/p>\n

However, the Paxos Labs spin-off was necessary to address the lack of clarity associated with DeFi regulation. Now, the team wants to go beyond branded stablecoins.\u00a0<\/span><\/p>\n

Paxos Labs’ Amplify plans<\/h2>\n

Amplify is a new stack by Paxos Labs that allows users to mint, earn, and borrow assets. For institutions, Amplify aims to help apps and other fintechs make on-chain assets more productive.<\/span><\/p>\n

The end goal? Empower users to earn yield. <\/span><\/p>\n

Commenting on the update, Bhau Kotecha, Co-Founder of Paxos Labs, said,\u00a0<\/span><\/p>\n

Is ‘buy and hold at JP Morgan’ really what digital assets were built for? That’s a failure. That’s not the mission. The first step was getting people in. The next step is making their assets productive. That’s what we’re building.<\/span><\/p><\/blockquote>\n

According to the team, Amplify has already shown traction. The project cited partners like privacy-focused chain Aleo, neobank Hyperbeat, and Toku, recording a surge in assets under management after it went live last week.\u00a0<\/span><\/p>\n

The project is betting on the falling Fed interest rate as a catalyst for users to deploy capital on-chain. Even so, the on-chain yield has seen significant cooling, just like the broader market.\u00a0<\/span><\/p>\n

In fact, the overall value locked across major yield protocols like Spark Savings and Pendle has <\/span>dropped<\/span><\/a> from $18 billion in September 2025 to $6 billion in April 2026. <\/span><\/p>\n

That\u2019s a 3x decline, underscoring a risk-off amongst investors for on-chain yield.\u00a0<\/span><\/p>\n

\"Paxos<\/a>
Source: DeFiLlama<\/figcaption><\/figure>\n
\n

Final Summary<\/h2>\n
    \n
  • Paxos Labs has raised $12M, led by Blockchain Capital, to solve what it calls \u2018product problem\u2019 that can scale on-chain yield and make crypto productive.\u00a0<\/span><\/em><\/li>\n
  • Demand for on-chain yield has dropped three times from September\u2019s peak of $18B to current $6B levels.\u00a0<\/span><\/em><\/li>\n<\/ul>\n
    \n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Demand for on-chain yield has dropped from $18 billion to 6 billion, marking a 3x market cool-off.<\/p>\n","protected":false},"author":79,"featured_media":589425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[950,66,3,4,20],"tags":[],"class_list":["post-589408","post","type-post","status-publish","format-standard","has-post-thumbnail","category-defi","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"\nPaxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Paxos Labs' Amplify will help solve the 'product problem' and ensure users scale on-chain yield beyond the current failed 'hodl' strategy\" \/>\n<meta name=\"robots\" content=\"index, follow, max-image-preview:large\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto\" \/>\n<meta property=\"og:description\" content=\"Demand for on-chain yield has dropped from $18 billion to 6 billion, marking a 3x market cool-off.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/\" \/>\n<meta property=\"og:site_name\" content=\"AMBCrypto\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/cryptoamb\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-16T04:00:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Benjamin Njiri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@CryptoAmb\" \/>\n<meta name=\"twitter:site\" content=\"@CryptoAmb\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Benjamin Njiri\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"ReportageNewsArticle\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/\"},\"author\":{\"name\":\"Benjamin Njiri\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/person\\\/553bc0a52388cbc0397b81684d514809\"},\"headline\":\"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019\",\"datePublished\":\"2026-04-16T04:00:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/\"},\"wordCount\":431,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/FI_QB.CN_PAXOS_15-04-2026.webp\",\"articleSection\":[\"DeFi\",\"News\",\"News 1\",\"Social\",\"Trading View\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#respond\"]}],\"copyrightYear\":\"2026\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/\",\"name\":\"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/FI_QB.CN_PAXOS_15-04-2026.webp\",\"datePublished\":\"2026-04-16T04:00:12+00:00\",\"description\":\"Paxos Labs' Amplify will help solve the 'product problem' and ensure users scale on-chain yield beyond the current failed 'hodl' strategy\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\\\/#primaryimage\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/FI_QB.CN_PAXOS_15-04-2026.webp\",\"contentUrl\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/FI_QB.CN_PAXOS_15-04-2026.webp\",\"width\":1600,\"height\":900,\"caption\":\"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019\"},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#website\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/\",\"name\":\"AMBCrypto\",\"description\":\"Stay Ahead!\",\"publisher\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\"},\"alternateName\":\"AMBCrypto News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/ambcrypto.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#organization\",\"name\":\"AMBCrypto\",\"alternateName\":\"AMBCrypto News\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/amb-wide.jpg\",\"width\":600,\"height\":60,\"caption\":\"AMBCrypto\"},\"image\":{\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/cryptoamb\",\"https:\\\/\\\/x.com\\\/CryptoAmb\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/13629485\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/#\\\/schema\\\/person\\\/553bc0a52388cbc0397b81684d514809\",\"name\":\"Benjamin Njiri\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2023\\\/07\\\/Benja-100x100.jpeg\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2023\\\/07\\\/Benja-100x100.jpeg\",\"contentUrl\":\"https:\\\/\\\/ambcrypto.com\\\/wp-content\\\/uploads\\\/2023\\\/07\\\/Benja-100x100.jpeg\",\"caption\":\"Benjamin Njiri\"},\"description\":\"Benjamin Njiri is a Crypto Analyst and Reporter at AMBCrypto, specializing in technical analysis and emerging market trends. With a background in Telecoms engineering and power systems, he applies data analysis to filter market noise and decode on-chain data. His work delivers clear, data-driven insights that help readers navigate crypto markets with confidence.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/benjamin-njiri-7254a984\\\/\"],\"knowsAbout\":[\"Technical Analysis\",\"Crypto Market Trends\",\"Crypto Market Analysis\"],\"jobTitle\":\"Journalist\",\"worksFor\":\"AMBCrypto\",\"url\":\"https:\\\/\\\/ambcrypto.com\\\/author\\\/benjamin-njiri\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto","description":"Paxos Labs' Amplify will help solve the 'product problem' and ensure users scale on-chain yield beyond the current failed 'hodl' strategy","robots":{"index":"index","follow":"follow","max-image-preview":"max-image-preview:large"},"canonical":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/","og_locale":"en_US","og_type":"article","og_title":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto","og_description":"Demand for on-chain yield has dropped from $18 billion to 6 billion, marking a 3x market cool-off.","og_url":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/","og_site_name":"AMBCrypto","article_publisher":"https:\/\/www.facebook.com\/cryptoamb","article_published_time":"2026-04-16T04:00:12+00:00","og_image":[{"width":1600,"height":900,"url":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp","type":"image\/webp"}],"author":"Benjamin Njiri","twitter_card":"summary_large_image","twitter_creator":"@CryptoAmb","twitter_site":"@CryptoAmb","twitter_misc":{"Written by":"Benjamin Njiri","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"ReportageNewsArticle","@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#article","isPartOf":{"@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/"},"author":{"name":"Benjamin Njiri","@id":"https:\/\/ambcrypto.com\/#\/schema\/person\/553bc0a52388cbc0397b81684d514809"},"headline":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019","datePublished":"2026-04-16T04:00:12+00:00","mainEntityOfPage":{"@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/"},"wordCount":431,"commentCount":0,"publisher":{"@id":"https:\/\/ambcrypto.com\/#organization"},"image":{"@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#primaryimage"},"thumbnailUrl":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp","articleSection":["DeFi","News","News 1","Social","Trading View"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#respond"]}],"copyrightYear":"2026","copyrightHolder":{"@id":"https:\/\/ambcrypto.com\/#organization"}},{"@type":"WebPage","@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/","url":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/","name":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019 - AMBCrypto","isPartOf":{"@id":"https:\/\/ambcrypto.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#primaryimage"},"image":{"@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#primaryimage"},"thumbnailUrl":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp","datePublished":"2026-04-16T04:00:12+00:00","description":"Paxos Labs' Amplify will help solve the 'product problem' and ensure users scale on-chain yield beyond the current failed 'hodl' strategy","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ambcrypto.com\/paxos-labs-raises-12mln-to-solve-this-defi-product-problem\/#primaryimage","url":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp","contentUrl":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/FI_QB.CN_PAXOS_15-04-2026.webp","width":1600,"height":900,"caption":"Paxos Labs raises $12mln to solve THIS DeFi \u2018product problem\u2019"},{"@type":"WebSite","@id":"https:\/\/ambcrypto.com\/#website","url":"https:\/\/ambcrypto.com\/","name":"AMBCrypto","description":"Stay Ahead!","publisher":{"@id":"https:\/\/ambcrypto.com\/#organization"},"alternateName":"AMBCrypto News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ambcrypto.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ambcrypto.com\/#organization","name":"AMBCrypto","alternateName":"AMBCrypto News","url":"https:\/\/ambcrypto.com\/","logo":{"@type":"ImageObject","@id":"https:\/\/ambcrypto.com\/#\/schema\/logo\/image\/","url":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/amb-wide.jpg","width":600,"height":60,"caption":"AMBCrypto"},"image":{"@id":"https:\/\/ambcrypto.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/cryptoamb","https:\/\/x.com\/CryptoAmb","https:\/\/www.linkedin.com\/company\/13629485\/"]},{"@type":"Person","@id":"https:\/\/ambcrypto.com\/#\/schema\/person\/553bc0a52388cbc0397b81684d514809","name":"Benjamin Njiri","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/07\/Benja-100x100.jpeg","url":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/07\/Benja-100x100.jpeg","contentUrl":"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/07\/Benja-100x100.jpeg","caption":"Benjamin Njiri"},"description":"Benjamin Njiri is a Crypto Analyst and Reporter at AMBCrypto, specializing in technical analysis and emerging market trends. With a background in Telecoms engineering and power systems, he applies data analysis to filter market noise and decode on-chain data. His work delivers clear, data-driven insights that help readers navigate crypto markets with confidence.","sameAs":["https:\/\/www.linkedin.com\/in\/benjamin-njiri-7254a984\/"],"knowsAbout":["Technical Analysis","Crypto Market Trends","Crypto Market Analysis"],"jobTitle":"Journalist","worksFor":"AMBCrypto","url":"https:\/\/ambcrypto.com\/author\/benjamin-njiri\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/posts\/589408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/users\/79"}],"replies":[{"embeddable":true,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/comments?post=589408"}],"version-history":[{"count":0,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/posts\/589408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/media\/589425"}],"wp:attachment":[{"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/media?parent=589408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/categories?post=589408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ambcrypto.com\/wp-json\/wp\/v2\/tags?post=589408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}