On June 19, Coin World reported that stablecoin issuer Paxos has launched a new startup, Paxos Labs, aimed at helping institutions directly integrate DeFi and on-chain products into their own applications and platforms. Bhau Kotecha, co-founder of Paxos Labs, stated that the company was incubated internally at Paxos over the past six months due to the growing demand for connecting DeFi markets and real asset opportunities. Paxos Labs is building easy-to-integrate APIs, allowing clients to incorporate related products without needing to deeply understand the complexities of DeFi. Its initial products include issuing custom-branded stablecoins, deploying tokenized yield strategies, and managing structured digital asset tools, with primary target clients being consumer fintech applications, exchanges, and blockchain networks.
Paxos Labs will also collaborate with multi-asset issuers to support custom stablecoins, leveraging Paxos's regulatory, infrastructure, and financial system building experience. Unlike companies that focus on custody or direct integration with DeFi protocols, Paxos Labs focuses on providing APIs and infrastructure for platforms to deliver on-chain products to end users. Over the next 12 to 18 months, its goal is to become a one-stop shop for institutions integrating on-chain products.