PayPal Increases Investment in Blockchain Risk Management Firm Chaos Labs

Core Insights - PayPal Ventures has made an additional investment in Chaos Labs, a blockchain risk management company, reflecting confidence in their vision for a safer crypto ecosystem [1] - Chaos Labs recently completed a $55 million Series A funding round, with participation from various investors including PayPal Ventures [2] - The investment will be made in PayPal's stablecoin, PYUSD, which is designed to enhance payment opportunities and is fully backed by U.S. dollar deposits and equivalents [3] Group 1 - PayPal Ventures' investment aims to support Chaos Labs in launching innovative products like Edge, which addresses oracle vulnerabilities in DeFi applications [1] - Chaos Labs' CEO highlighted that Edge provides contextualized risk and price data for various assets, including stablecoins and real-world assets [2] - The company was founded to secure DeFi protocols against economic vulnerabilities and market manipulation [2] Group 2 - PYUSD, introduced by PayPal in August 2023, is a U.S. dollar-pegged stablecoin that is 100% backed by U.S. dollar deposits and short-term Treasuries [3] - The stablecoin is available on the Solana blockchain, enhancing its speed and cost-effectiveness for users [3]