Key Takeaways
- • Paxos Labs, a newly spun-off subsidiary of stablecoin issuer Paxos, closed a $12 million Series funding round led by Blockchain Capital, with participation from Robot Ventures, family office Maelstrom, and DeFi developer Uniswap Labs.
- • The spin-off focuses on decentralized finance (DeFi) infrastructure, enabling enterprise clients to create, manage, and integrate stablecoins and crypto lending protocols without requiring in-house smart contract expertise.
- • Charles Cascarilla, CEO of Paxos, also serves as CEO of Paxos Labs; cofounder Bhaumik Kotecha declined to disclose the valuation at which the round was raised.
- • Paxos Labs positions itself to capture growing demand for enterprise-grade stablecoin solutions, leveraging Paxos's established white-label issuer business model and existing partnerships with major institutions including PayPal and Nubank.
- • The funding will accelerate product development and market expansion as enterprises increasingly seek to integrate stablecoin and DeFi capabilities into their offerings.
Summary
Paxos Labs, a newly formed business unit spun off from blockchain infrastructure firm Paxos, announced the completion of a $12 million strategic funding round on April 15, 2026. The round was led by prominent crypto venture investor Blockchain Capital, with additional participation from Robot Ventures, family office Maelstrom, and DeFi protocol developer Uniswap Labs. The funding round valuation was not disclosed, according to Paxos Labs cofounder Bhaumik Kotecha.
Paxos Labs focuses on decentralized finance infrastructure and serves as a bridge between traditional enterprise clients and the DeFi ecosystem. The subsidiary helps companies—particularly those without in-house blockchain expertise—integrate stablecoins and crypto lending protocols into their platforms. As Kotecha explained, the company's technology simplifies integration for customers, reducing the need for them to independently manage complex smart contract development while simultaneously addressing compliance and risk management concerns.
The parent company Paxos, founded in 2012, has established itself as a leading white-label stablecoin issuer serving major institutional clients. The company's existing partnerships with fintech and financial services firms such as PayPal and Nubank have provided a foundation for enterprise adoption of blockchain-based financial services. Charles Cascarilla serves as CEO of both Paxos and Paxos Labs, creating organizational continuity between the parent and subsidiary operations.
The spin-off reflects broader market dynamics in which stablecoin adoption has accelerated among enterprises seeking to streamline payments and reduce transaction costs. As more companies issue their own stablecoins, demand has grown for specialized infrastructure enabling end customers to access DeFi protocols and stablecoin-based financial products. Kotecha noted that DeFi represents a natural market expansion for enterprises issuing tokens, positioning Paxos Labs to capture this emerging demand segment with purpose-built technology and compliance expertise.
Paxos Labs focuses on decentralized finance infrastructure and serves as a bridge between traditional enterprise clients and the DeFi ecosystem. The subsidiary helps companies—particularly those without in-house blockchain expertise—integrate stablecoins and crypto lending protocols into their platforms. As Kotecha explained, the company's technology simplifies integration for customers, reducing the need for them to independently manage complex smart contract development while simultaneously addressing compliance and risk management concerns.
The parent company Paxos, founded in 2012, has established itself as a leading white-label stablecoin issuer serving major institutional clients. The company's existing partnerships with fintech and financial services firms such as PayPal and Nubank have provided a foundation for enterprise adoption of blockchain-based financial services. Charles Cascarilla serves as CEO of both Paxos and Paxos Labs, creating organizational continuity between the parent and subsidiary operations.
The spin-off reflects broader market dynamics in which stablecoin adoption has accelerated among enterprises seeking to streamline payments and reduce transaction costs. As more companies issue their own stablecoins, demand has grown for specialized infrastructure enabling end customers to access DeFi protocols and stablecoin-based financial products. Kotecha noted that DeFi represents a natural market expansion for enterprises issuing tokens, positioning Paxos Labs to capture this emerging demand segment with purpose-built technology and compliance expertise.
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