PayPal has utilized its own stablecoin to enhance its investment in Chaos Labs, a blockchain risk management specialist.
Founded in 2021, the New York-based company provides a comprehensive suite of on-chain risk management tools specifically designed for decentralized finance (DeFi). Recently, Chaos Labs launched its Edge decentralized oracle protocol, which has already amassed $30 billion in just two months and been adopted by exchanges such as Jupiter, a leading perpetuals exchange on the Solana blockchain.
Last year, PayPal introduced its PYUSD stablecoin on Solana, stating that this investment, executed in PYUSD on-chain, reinforces its ongoing commitment to the blockchain ecosystem. Following an initial investment, PayPal Ventures is now increasing its stake in Chaos Labs during the startup’s $55 million Series A funding round.
Amman Bhasin, partner at PayPal Ventures, expressed, “Our continued investment in Chaos Labs reflects our belief in their vision to create a safer crypto ecosystem and move more financial services on chain.” Additionally, PayPal has previously leveraged PYUSD to invest approximately $5 million in Mesh, an embedded finance startup focused on crypto payments.