How 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 rapid global transactions into a tool that enables businesses to explore new opportunities. This shift has sparked a new wave of adoption, driven by companies seeking to leverage stablecoins for practical applications, rather than just their basic infrastructure. According to Chunda McCain, co-founder of Paxos Labs, the industry is transitioning from fundamental infrastructure to tangible business use cases. McCain emphasized that the initial step was to establish a stablecoin, but now the focus is on exploring the possibilities beyond that. Recently, Paxos Labs secured $12 million in strategic funding, led by Blockchain Capital and supported by Robot Ventures, Maelstrom, and Uniswap, to develop a 'financial utility stack' that allows companies to integrate digital assets into their products seamlessly. The Amplify Suite, launched by Paxos Labs, offers a bundle of three primary tools: Earn, which provides yield on digital assets; Borrow, which enables lending against these assets; and Mint, which facilitates the creation of branded stablecoins. This suite is designed to enable firms to integrate tokens into their business and layer on additional capabilities over time. For years, the adoption of enterprise crypto has focused on 'first-touch' capabilities, such as trading, custody, or issuing stablecoins, which, although essential, rarely generated significant returns on their own. McCain noted that stablecoins have long been considered 'loss leaders.' However, the 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 transactions can reduce these costs and even generate yield on balances held on the blockchain. This concept allows businesses to convert costs into revenue. Some innovative use cases emerge at the intersection of payments and credit. Payment providers can track merchant revenues and cash flow, positioning them to underwrite loans, as argued by McCain. 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. Not every company needs to issue its own stablecoin to capture these benefits. While some companies, like PayPal, have launched branded tokens to control payments and margins, creating a proprietary token requires significant investment in liquidity, compliance, and distribution. McCain noted that if a company only needs the economic benefits, it does not need to create its own token. Many firms 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 how businesses operate. Stablecoins are starting to reshape profit margins, unlock credit, and change how money moves globally, particularly in areas where traditional systems are costly or slow. As McCain stated, 'It might sound boring, but this is the math.'