How Stablecoins Can Revolutionize Business Revenue Streams, According to Paxos Labs Co-Founder

The stablecoin market, currently valued at $300 billion, has evolved beyond its initial purpose of facilitating rapid cross-border transactions. Now, companies are exploring the potential applications of these digital assets. This shift is driving a new wave of adoption, as the industry transitions from building basic infrastructure to developing practical business use cases, according to Chunda McCain, co-founder of Paxos Labs. In a recent interview with CoinDesk, McCain noted that the initial focus on acquiring stablecoins has given way to a new question: what's next? Paxos Labs, a subsidiary of Paxos, the New York-based digital asset firm behind popular stablecoins such as PYUSD and USDG, recently secured $12 million in strategic funding. The company is using these funds to develop a 'financial utility stack' that enables businesses to integrate digital assets into their products through a single integration. The newly launched Amplify Suite 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 suite allows companies to integrate tokens into their business and add capabilities over time. For years, enterprise crypto adoption has focused on 'first-touch' capabilities like trading, custody, or issuing stablecoins. However, these initial steps rarely generated significant returns on their own, according to McCain. The true opportunity lies in how these assets are utilized. Payments are a prime example: merchants typically incur 2-3% fees, while stablecoin-based payment rails can reduce these costs and even generate yield on balances held on-chain. This allows businesses to 'turn what has always been a cost into revenue,' McCain said. Some of the more innovative use cases lie 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, 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, he said. Not every company needs its own token to capture these benefits. While 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 just need the economics, you don’t need to build your own,' McCain said. Many firms can instead 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 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.