Stablecoins Offer Businesses a New Revenue Stream, Says Paxos Labs Co-Founder

The $300 billion stablecoin market has evolved beyond its initial purpose of facilitating rapid global transactions, with businesses now exploring their potential applications. This shift is driving a new wave of adoption, says Chunda McCain, co-founder of Paxos Labs, as the industry transitions from infrastructure development to practical business use cases. "The initial step was creating a stablecoin, and now the question is: what's next?" McCain stated in an interview with CoinDesk. Paxos Labs recently secured $12 million in strategic funding, led by Blockchain Capital, to develop a "financial utility stack" that enables companies 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 them, and Mint, which supports the issuance of branded stablecoins. This allows firms to integrate tokens into their business and add capabilities over time. For years, enterprise crypto adoption focused on basic capabilities like trading, custody, or issuing a stablecoin, which rarely generated 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 clear example, as merchants typically incur 2% to 3% in fees, while stablecoin rails can reduce these costs and even generate yield on on-chain balances. "You turn what has always been a cost into revenue," he said. Some novel use cases emerge at the intersection of payments and credit, where payment providers can underwrite loans based on real-time merchant performance, allowing merchants to access financing and earn yield on incoming payments while settling 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, as 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 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, especially in areas where traditional systems are costly or slow. "It might sound boring, but this is the math," McCain said.