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

The $300 billion stablecoin market, initially designed for faster global transactions, has prompted businesses to explore new uses for these digital currencies. This shift is driving a new phase of adoption, as the industry transitions from basic infrastructure to practical business applications, according to Chunda McCain, co-founder of Paxos Labs. In a recent interview with CoinDesk, McCain stated that the initial focus on stablecoin development has given way to a new question: what's next? Paxos Labs, incubated under Paxos, the New York-based digital asset firm behind popular stablecoins like PayPal's PYUSD and the Global Dollar, has secured $12 million in strategic funding to develop a 'financial utility stack.' This stack enables companies to convert digital assets into products through a single integration. The newly launched Amplify Suite offers three core tools: Earn, which provides yield on digital assets; Borrow, which facilitates lending against them; and Mint, which supports the creation of branded stablecoins. By integrating these tools, businesses can layer on new capabilities over time. For years, enterprise crypto adoption focused on 'first-touch' capabilities like trading, custody, or issuing stablecoins, but these steps rarely generated returns on their own. According to McCain, stablecoins have long been 'loss leaders.' However, the opportunity lies in how these assets are utilized. Payments are a prime example, as merchants typically incur 2% to 3% fees, while stablecoin-based payments can reduce these costs and generate yield on on-chain balances. 'You turn what has always been a cost into revenue,' McCain explained. Some novel use cases emerge 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, earn yield on incoming payments, and settle transactions instantly across borders. While these models are still in the early stages, the building blocks are starting to come together, according to McCain. Not all companies need their own stablecoin to capture these benefits. While some firms, like PayPal, have launched branded tokens to control payments and margins, issuing a stablecoin requires significant investment in liquidity, compliance, and distribution. 'If you just need the economics, you don't need to build your own,' McCain said. Many businesses can integrate existing stablecoins and still 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 business operations. Stablecoins are starting to redefine profit margins, unlock credit, and change how money moves globally, particularly in areas where traditional systems are costly or slow. 'It might sound boring, but this is the math,' McCain said.