Paxos establishes a new company, Paxos Labs, aiming to help institutions bridge to DeFi and issue custom-branded stablecoins.

BlockBeats reported on June 19, citing The Block, that Paxos has launched a new startup called Paxos Labs. The goal of Paxos Labs is to help institutions integrate decentralized finance (DeFi) and on-chain products directly into their applications and platforms.

Bhau Kotecha, co-founder and head of Paxos Labs, stated that as enterprises continue to look for opportunities to connect with the DeFi market and real-world asset opportunities, Paxos Labs has been incubated internally within Paxos over the past six months. The initial offerings of Paxos Labs include issuing custom-branded stablecoins, deploying tokenized yield strategies, and providing tools for managing structured digital assets. This startup primarily targets customers such as consumer fintech applications, exchanges, and blockchain networks.

Kotecha explained that, for example, if a fintech platform wants to issue its own branded stablecoin or provide users with a USD-denominated product that enables passive income without the need for direct interaction with DeFi, Paxos Labs can offer the necessary infrastructure. Similarly, if a Layer 1 network or DeFi protocol wants to introduce native Bitcoin or Ethereum yield products to enhance capital retention and user engagement, they can leverage Paxos Labs' API to design and launch these functionalities.