Paxos announced the establishment of a new company, Paxos Labs, aiming to turn DeFi and stablecoin services into plug-and-play features for FinTech apps, with the goal of becoming the "foundation layer" for global on-chain financial products. (Background: Kraken, Paxos, Robinhood... jointly formed the "USDG Stablecoin Network": can revenue sharing break the encirclement?) (Background information: Paxos collaborates with DBS Bank to issue the USD stablecoin USDG, regulated by the Monetary Authority of Singapore) Paxos's newly created company Paxos Labs officially debuted on June 18, announcing its intention to transform DeFi and stablecoin services into plug-and-play features for FinTech apps, aiming to become the "default foundation layer" for global on-chain financial products. Paxos Labs is officially launched. Paxos has extensive experience in issuing stablecoins, having assisted in the issuance of PayPal USD, BUSD... After six months of incubation, Paxos Labs is launched, hoping to lower the barriers for institutions to enter the on-chain world through a compliant framework. Co-founder Bhau Kotecha stated: "Our goal is to become the default foundation layer for global on-chain financial products." Kotecha further explained that if a certain fintech platform wishes to issue its own branded stablecoin, or launch a dollar-denominated product that allows users to earn passive income without direct exposure to DeFi, Paxos Labs can provide the necessary infrastructure support. Similarly, if a layer one blockchain or DeFi protocol intends to launch native Bitcoin or Ethereum yield products to enhance capital retention and user engagement, they can also develop and release related features through Paxos Labs' API. Three Core Products The official announcement indicates that the new platform focuses on backend APIs, providing three services: 1. Stablecoin API allows institutions to issue their own branded stablecoins, with options for Global Dollar or Lift Dollar (two other stablecoin-related products issued by Paxos) as reserves; 2. Tokenized yield strategies that allow apps to easily integrate the "Earn on USD/ETH/BTC" feature; 3. Assistance in designing and managing structured digital asset portfolios. Paxos Labs aims to target consumer-facing FinTech, exchanges, and L1/L2 protocols. Unlike companies like Fireblocks and Anchorage that only provide custodial or direct connection services, Paxos will encapsulate complex processes into standardized APIs, enabling partners to list on-chain products directly on their original interfaces, enhancing user stickiness. Next Steps Currently, the Paxos Labs team consists of 12 people, and in the next 12-18 months, they will expand engineering and marketing, aiming to build Paxos Labs into a one-stop shop for institutions to adopt on-chain finance. It is understood that the company has already begun collaborations with Velo, DBS, Stripe, Mastercard, etc., covering cross-border payments and RWA tokenization, promoting further integration between traditional finance and on-chain finance. Related Reports Paxos launches yield-generating stablecoin "USDL" distributing 5% daily returns, can it shake the monopoly positions of USDT and USDC? Solana launches "Token Expansion" targeting enterprise customers! Seven new standards, Paxos, GMO Trust leading the way. Signature Bank shut down) Tether, Crypto.com claim no exposure, Coinbase, Paxos each hold about $250 million. "Paxos launches Paxos Labs: helping enterprises deploy DeFi and stablecoin applications, moving towards the global on-chain financial foundation layer." This article was first published in BlockTempo (the most influential blockchain news media).

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