Stablecoins Enable Businesses to Convert 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 ways to leverage these digital assets. This shift is driving the adoption of stablecoins into a new phase, according to Chunda McCain, co-founder of Paxos Labs, who notes that the industry is transitioning from building basic infrastructure to focusing on practical business applications. McCain stated in an interview with CoinDesk, 'Initially, the goal was to obtain a stablecoin. Now, the question is: what's next?' Last week, Paxos Labs secured $12 million in a strategic funding round led by Blockchain Capital, with participation from Robot Ventures, Maelstrom, and Uniswap. This investment will be used to develop a 'financial utility stack' that enables companies to create products from digital assets through a single integration. The newly launched Amplify Suite offers three primary tools: Earn, which provides yield on digital assets; Borrow, which allows lending against these assets; and Mint, which supports the issuance of branded stablecoins. The idea behind this suite is to allow companies to integrate tokens into their business and add capabilities over time. For years, the adoption of enterprise crypto focused on 'first-touch' capabilities like trading, custody, or issuing a stablecoin. However, these steps rarely generated returns on their own, according to McCain. He noted that stablecoins have been 'loss leaders' for years. The opportunity lies in how these assets are utilized. Payments are a clear example: merchants typically incur 2% to 3% in fees, while stablecoin rails can reduce these costs and even generate yield on balances held on-chain. McCain stated, 'You convert what has always been a cost into revenue.' Some novel use cases exist at the intersection of payments and credit. Payment providers already track merchant revenues and cash flow, which positions 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 their early stages, the building blocks are beginning to come together, he said. Not every company needs its own stablecoin to capture these benefits. While companies like PayPal have launched branded tokens to control payments and margins, issuing one requires significant investment in liquidity, compliance, and distribution. McCain stated, 'If you just need the economics, you don't need to build your own.' Many companies can instead integrate existing stablecoins and still benefit from lower costs and added yield. This shift may lack the hype surrounding big firms like Western Union announcing their own token, but it has a tangible impact on how businesses operate. Stablecoins are starting to redefine margins, unlock credit, and change how money moves globally, especially in areas where traditional systems are costly or slow. McCain said, 'It might sound boring, but this is the math.'