Paxos Labs Co-Founder: Stablecoins Can Convert Expenses into Revenue for Businesses

The $300 billion stablecoin market is evolving beyond its initial purpose of facilitating rapid global transactions. Businesses are now exploring the potential applications of these digital assets. This shift is driving a new wave of adoption, says Chunda McCain, co-founder of Paxos Labs, as the industry moves from building basic infrastructure to focusing on practical business use cases. McCain notes that the initial hurdle was creating a stablecoin, but now the question is how to utilize them effectively. Paxos Labs recently secured $12 million in funding to develop a 'financial utility stack' that enables companies to integrate digital assets into their products through a single integration. The Amplify Suite, launched by Paxos Labs, offers three primary tools: Earn, which provides yield on digital assets; Borrow, which facilitates lending against these assets; and Mint, which supports the creation of branded stablecoins. This allows firms to integrate tokens into their business and add capabilities over time. For years, enterprise crypto adoption focused on basic capabilities like trading, custody, or issuing a stablecoin. However, these initial steps rarely generated significant returns on their own. McCain argues that the opportunity lies in how these assets are used, citing payments as a prime example. Merchants typically incur 2% to 3% fees, while stablecoin transactions can reduce these costs and even generate yield on balances held on the blockchain. This effectively turns a cost into revenue. Some novel use cases exist at the intersection of payments and credit. 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 while earning yield on incoming payments and settling instantly across borders. Although these models are still in the early stages, the building blocks are starting to come together. Not every company needs its own stablecoin to capture these benefits. While some companies, like PayPal, have launched branded tokens to control payments and margins, issuing one requires significant investment in liquidity, compliance, and distribution. Many firms can instead integrate existing stablecoins and still benefit from lower costs and added yield. This shift may lack the hype associated with big firms launching their own tokens, but it has a tangible impact on business operations. Stablecoins are starting to reshape margins, unlock credit, and change how money moves globally, particularly in areas where traditional systems are costly or slow.