Stablecoins Can Revolutionize Business Models by Converting Expenses into Revenue, Says Paxos Labs Co-Founder

The $300 billion stablecoin market has evolved beyond its initial purpose of facilitating rapid global transactions, with businesses now exploring the potential applications of these digital assets. This shift is driving a new wave of adoption, according to Paxos Labs Co-Founder Chunda McCain, who believes the industry is transitioning from basic infrastructure development to practical business use cases. In a recent interview with CoinDesk, McCain stated, 'The initial step was to acquire a stablecoin, and now the question is: 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 secured $12 million in strategic funding. The company is utilizing these funds to develop a 'financial utility stack' that enables businesses to transform 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 these assets; and Mint, which supports the creation of branded stablecoins. This suite allows companies to integrate tokens into their business models and subsequently add more capabilities. For years, enterprise crypto adoption has focused on 'first-touch' capabilities like trading, custody, or issuing stablecoins, which have rarely generated significant returns on their own. According to McCain, 'Stablecoins have been loss leaders for years.' 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 transactions can reduce these costs and even generate yield on balances held on-chain. 'You convert what has always been a cost into revenue,' McCain explained. Some novel use cases emerge at the intersection of payments and credit. Payment providers already track merchant revenues and cash flow, positioning them 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. While these models are still in their early stages, the building blocks are starting to come together, according to McCain. Not all companies need their own stablecoin to capture these benefits. Although some companies, like PayPal, have launched branded tokens to control payments and margins, issuing a token requires significant investment in liquidity, compliance, and distribution. 'If you only need the economic benefits, you don't need to create your own token,' 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 beginning to redefine profit margins, unlock credit, and change how money moves globally, particularly in areas where traditional systems are costly or slow. 'It may sound unexciting, but this is the math,' McCain stated.