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

The $300 billion stablecoin market, initially designed for faster global transactions, is now being leveraged by companies to explore new opportunities. This shift is driving a new wave of adoption, says Chunda McCain, co-founder of Paxos Labs, as the industry transitions from basic infrastructure to practical business applications. "The initial step was adopting a stablecoin, and now the question is what's next?" McCain stated in an interview with CoinDesk. Paxos Labs recently raised $12 million in a strategic funding round, which will be used to develop a "financial utility stack" that enables companies to transform digital assets into products through a single integration. The newly launched Amplify Suite offers three core tools: Earn, which provides yields on digital assets; Borrow, which facilitates lending against them; and Mint, which supports the creation of branded stablecoins. This allows firms 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 a stablecoin, but these steps rarely generated returns on their own. According to McCain, "Stablecoins have been loss leaders for years." The opportunity lies in how these assets are utilized. Payments are a clear example, as merchants typically give up 2% to 3% in fees, while stablecoin rails can reduce those costs and even generate yields on balances held on-chain. "You turn what has always been a cost into revenue," he explained. Some novel use cases are emerging 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 allow merchants to access financing based on real-time performance, earn yields on incoming payments, and settle instantly across borders. Although these models are still in their early stages, the building blocks are starting 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. "If you just need the economics, you don’t need to build your own," McCain stated. Many firms can instead integrate existing stablecoins and still benefit from lower costs and added yields. 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 where traditional systems remain costly or slow. "It might sound boring, but this is the math," McCain said.