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

The $300 billion stablecoin market has evolved beyond its initial purpose of facilitating faster global transactions. Now, businesses are exploring the potential applications of stablecoins, driving a new wave of adoption. Chunda McCain, co-founder of Paxos Labs, notes that the industry is transitioning from building basic infrastructure to focusing on real-world use cases. "The initial step was adopting a stablecoin, and now the question is, what's next?" he stated in an interview. Recently, Paxos Labs secured $12 million in strategic funding, led by Blockchain Capital, to develop a 'financial utility stack' that enables companies to convert digital assets into products through a single integration. The newly launched Amplify Suite offers three core tools: Earn, which provides yield on digital assets, Borrow, which allows lending against them, and Mint, which supports the creation of branded stablecoins. This suite 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, which have not generated significant returns on their own, according to McCain. "Stablecoins have been loss leaders for years," he said. However, the opportunity lies in how these assets are utilized. Payments are a prime example, as merchants typically incur 2% to 3% fees, while stablecoin rails can reduce these costs and even generate yield on balances held on-chain. "You transform what has always been a cost into revenue," McCain explained. Some novel use cases emerge at the intersection of payments and credit. Payment providers can track merchant revenues and cash flow, positioning them to underwrite loans, McCain argued. This could allow merchants to access financing based on real-time performance, earn yield on incoming payments, and settle transactions instantly across borders. 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 integrate existing stablecoins and still benefit from lower costs and added yield. The shift may lack the hype surrounding big firms launching their own tokens, but it has a tangible impact on business operations. Stablecoins are starting to redefine 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.