Stablecoins Can Transform Business Expenses into Revenue Streams, According to Paxos Labs Co-Founder

The $300 billion stablecoin market has evolved beyond its initial purpose of facilitating rapid global transactions, with companies now exploring the various applications of these digital dollars. This shift is driving a new wave of adoption, as the industry transitions from basic infrastructure development to practical business use cases, according to Chunda McCain, co-founder of Paxos Labs. "The initial focus was on creating a stablecoin, but now the question is: what's next?" McCain stated in an interview with CoinDesk. Last week, Paxos Labs secured $12 million in strategic funding, led by Blockchain Capital, with participation from Robot Ventures, Maelstrom, and Uniswap. The lab unit, incubated under Paxos, aims to develop tools that enable companies to utilize stablecoins more effectively. With the new funding, Paxos Labs is developing a 'financial utility stack' that allows companies to convert digital assets into products through a single integration. The recently launched Amplify Suite offers three core tools: Earn, which provides yield on digital assets; Borrow, which enables lending against them; and Mint, which supports the creation of branded stablecoins. This suite enables 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, which have rarely generated significant returns on their own, according to McCain. "Stablecoins have long been loss leaders," he noted. However, the opportunity lies in how these assets are utilized. Payments are a prime example: merchants typically incur 2% to 3% fees, while stablecoin-based payments can reduce these costs and even generate yield on on-chain balances. "You transform a traditional cost into a revenue stream," 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. 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 stablecoin 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 only need the economic benefits, you don't need to create your own token," McCain stated. Many companies 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 margins, unlock credit, and change how money moves globally, particularly in areas where traditional systems are costly or slow. "It may seem unexciting, but this is the underlying math," McCain noted.