Stablecoins Offer Businesses a Way to Convert Expenses into Revenue, Says Paxos Labs Co-Founder

The $300 billion stablecoin market has evolved beyond its initial purpose of facilitating faster global transactions, with businesses now exploring the potential uses of these digital assets. This shift is driving a new wave of adoption, as companies move beyond basic infrastructure and focus on practical business applications, according to Chunda McCain, co-founder of Paxos Labs. In a recent interview with CoinDesk, McCain noted that the industry is transitioning from the initial stage of stablecoin adoption to a phase where companies are asking, 'What's next?' Paxos Labs, a subsidiary of Paxos, the New York-based digital asset firm behind popular stablecoins such as PayPal's PYUSD and the Global Dollar, recently raised $12 million in strategic funding to develop a 'financial utility stack' that enables companies to integrate digital assets into their products through a single integration. The company's newly launched Amplify Suite provides three core tools: Earn, which offers yield on digital assets, Borrow, which enables lending against them, and Mint, which supports the creation of branded stablecoins. By leveraging these tools, businesses can turn digital assets into revenue-generating products. For years, enterprise crypto adoption has focused on 'first-touch' capabilities like trading, custody, or issuing stablecoins, but these initial steps rarely generated significant returns on their own, according to McCain. However, the true potential of stablecoins lies in how they are utilized, with payments being a prime example. Merchants typically incur fees of 2-3% on traditional payment systems, whereas stablecoin-based payments can reduce these costs and even generate yield on held balances. This allows businesses to convert what was once a cost into a revenue stream. Some novel use cases are emerging at the intersection of payments and credit, where payment providers can track merchant revenues and cash flow, positioning them to underwrite loans. This could enable merchants to access financing based on real-time performance, earn yield on incoming payments, and settle transactions instantly across borders. While some companies, like PayPal, have launched their own branded tokens to control payments and margins, not every business needs to issue its own stablecoin. Issuing a token requires significant investment in liquidity, compliance, and distribution, and companies can instead integrate existing stablecoins to benefit from lower costs and added yield. This shift may lack the hype surrounding big firms launching their own tokens, but it has a tangible impact on how businesses operate, with stablecoins starting to reshape margins, unlock credit, and change the way money moves globally, especially in areas where traditional systems are costly or slow.