PayPal Ventures announced an additional investment in Chaos Labs, a company providing blockchain risk management.
A press release issued Friday (September 20) announcing the decision did not specify the amount of the investment.
“Our continued investment in Chaos Labs reflects our belief in their vision to create a more secure crypto ecosystem and move more financial services on-chain,” Amman Bhasin, partner at PayPal Ventures, said in the release. “Chaos Labs has become a leading authority on risk in the industry and we are excited to witness their evolution as they launch innovative products like Edge to mitigate oracle vulnerabilities.”
Edge is a new decentralized oracle protocol that combines accurate price data with actionable market intelligence, ensures the security and efficiency of DeFi applications, and provides insights into market dynamics and security risks, according to the release.
News of PayPal Ventures’ additional investment comes a month after Chaos Labs announced a $55 million Series A funding round led by Haun Ventures and including new investors F-Prime Capital, Slow Ventures and Spartan Capital and existing investors PayPal Ventures, according to the announcement.
Chaos Labs will receive the investment in PayPal’s stablecoin, PYUSD, on-chain, according to the release.
“We are thrilled to receive the additional trust and support from the PayPal Ventures team,” said Omer Goldberg, CEO and founder of Chaos Labs, in the release. “Edge by Chaos is the culmination of the work and expertise of our entire company. Edge Price, Risk and Proofs provides contextualized and meaningful data on the risks and prices of assets, including stablecoins and other real-world assets, in addition to crypto assets and the locations that provide access to them.”
Chaos Labs was founded to secure DeFi protocols against economic vulnerabilities and market manipulation, the company said when announcing the seed funding in February 2023.
PayPal launched PYUSD in August 2023, stating in a press release that the U.S. dollar-pegged stablecoin is “designed to contribute to the stablecoin opportunity for payments and is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents.”
In May, the company said PYUSD was available on the Solana blockchain, making the stablecoin faster and cheaper to use.
