PayPal boosts investment in Chaos Labs for blockchain security

PayPal Ventures has invested another in Chaos Labs, a blockchain risk management firm, although the exact amount has not been disclosed.

The investment intends to help Chaos Labs improve the security of the crypto ecosystem and expand financial services based on blockchain technology.

“Our continued support for Chaos Labs reflects our belief in their mission to create a safer crypto environment,” said Amman Bhasin, partner at PayPal Ventures. “They’ve become a key player in risk management for the sector, and their innovative products like Edge are addressing vulnerabilities in decentralised finance (DeFi).”

The decentralised oracle protocol, Edge, introduced by Chaos Labs, is designed to enhance DeFi application security and efficiency. It combines actionable insights with precise price data. According to the company, the system provides market intelligence and assesses potential threats to ensure the security of both digital and real-world assets.

Chaos Labs’ most recent Series A funding round, which raised $55 million from investors including Haun Ventures, F-Prime Capital, and PayPal Ventures, was the catalyst for this latest investment. The $55 million was transferred using PayPal’s stablecoin, PYUSD.

“We’re grateful for PayPal Ventures’ continued support,” said Omer Goldberg, CEO and founder of Chaos Labs. “Edge is the culmination of our team’s expertise, delivering valuable risk and price data for assets, including stablecoins and other assets tied to real-world markets.”

Chaos Labs, which was formed to secure DeFi protocols from market manipulation and economic vulnerabilities, has broadened its offerings to protect a variety of digital assets. The company’s mission is in line with PayPal’s goals, particularly as PayPal expands its own blockchain activities.

In August 2023, PayPal announced PYUSD, a U.S. dollar-pegged stablecoin meant to make transactions faster and more cost-effective. PYUSD is now available on the Solana blockchain, increasing its utility by lowering transaction fees and speed.

PayPal Ventures’ additional investment reflects a rising interest in DeFi and the role of breakthrough technologies such as Chaos Labs’ Edge protocol. As DeFi evolves, the inclusion of solid risk management solutions becomes increasingly vital. PayPal Ventures’ investment in Chaos Labs demonstrates its belief in the ability of decentralised financial services to alter the sector.

With the backing of PayPal Ventures, Chaos Labs is well-positioned to strengthen its role in the DeFi space, helping to address key challenges faced by decentralised applications. This partnership not only provides Chaos Labs with the resources to innovate but also reinforces PayPal’s broader commitment to advancing blockchain technology and decentralised finance.

PayPal Ventures’ continuous investment in Chaos Labs demonstrates the increasing relevance of risk management in the DeFi market. Chaos Labs is well-positioned to meet the evolving difficulties of decentralised finance with new solutions such as the Edge protocol, and PayPal Ventures’ investment reinforces the company’s role in shaping the future of secure, on-chain financial services.

(Photo by Muhammad Asyfaul)

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