Businesses Can Convert Expenses into Revenue with Stablecoins, According to Paxos Labs Co-Founder

The $300 billion stablecoin market has evolved from a means to facilitate faster global transactions into a tool that businesses are now leveraging to drive revenue growth and improve operational efficiency. According to Chunda McCain, co-founder of Paxos Labs, the industry is shifting its focus from basic infrastructure development to exploring practical use cases for stablecoins. In a recent interview with CoinDesk, McCain noted that the initial step of adopting stablecoins has given way to a new question: what's next? This shift in focus is driving a new wave of adoption, with Paxos Labs at the forefront. Last week, the company secured $12 million in strategic funding, led by Blockchain Capital and supported by Robot Ventures, Maelstrom, and Uniswap. Paxos Labs, incubated under Paxos, the digital asset firm behind popular stablecoins such as PayPal's PYUSD and the Global Dollar, aims to develop tools that enable businesses to integrate digital assets into their operations seamlessly. With its fresh funding, Paxos Labs is building a "financial utility stack" designed to allow companies to create products from digital assets through a single integration. The company's newly launched Amplify Suite offers a bundle of three core tools: Earn, which provides yield on digital assets; Borrow, which facilitates lending against these assets; and Mint, which supports the issuance of branded stablecoins. This suite is intended to enable firms to integrate tokens into their business and add capabilities over time. Converting Costs into Revenue For years, the focus of enterprise crypto adoption has been on "first-touch" capabilities such as trading, custody, or issuing stablecoins. However, these initial steps rarely generated significant returns on their own, according to McCain. He noted that stablecoins have long been considered loss leaders. The real opportunity lies in how these assets are utilized. Payments are a prime example, where merchants typically incur fees of 2% to 3%, while stablecoin-based payments can reduce these costs and even generate yield on balances held on-chain. McCain emphasized that this approach allows businesses to convert what has traditionally been a cost into a revenue stream. Some of the more innovative use cases are emerging at the intersection of payments and credit. Payment providers, who already track merchant revenues and cash flow, are well-positioned to underwrite loans, McCain argued. This could enable merchants to access financing based on real-time performance, earn yield on incoming payments, and settle transactions instantly across borders. Although these models are still in their early stages, the building blocks are beginning to fall into place, he said. Not Every Company Needs Its Own Token To capitalize on these benefits, not every firm needs to issue its own stablecoin. While companies like PayPal have launched branded tokens to control payments and margins, creating one requires significant investment in liquidity, compliance, and distribution. According to McCain, if a company only needs the economic benefits, it doesn't need to build its own token. Many firms can integrate existing stablecoins and still benefit from lower costs and added yield. This shift may lack the excitement that comes with big firms like Western Union announcing their own token, but it has a tangible impact on how businesses operate. Stablecoins are starting to transform profit margins, unlock credit, and change the way money moves globally, particularly in areas where traditional systems are costly or slow. McCain emphasized that this development may seem unglamorous, but it's based on solid math.