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

The $300 billion stablecoin market, initially designed for faster global transactions, is now being repurposed by companies to explore new use cases. 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.

McCain notes that the initial focus on obtaining stablecoins has given way to the question of how to utilize them. In an interview with CoinDesk, McCain discussed how Paxos Labs is developing a 'financial utility stack' that enables 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 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, but the opportunity lies in how these assets are utilized.

Payments are a prime example, as merchants typically forfeit 2% to 3% in fees, while stablecoin rails can reduce these costs and even generate yield on balances held on-chain. This can 'turn what has always been a cost into revenue,' he said.

Novel use cases are emerging 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 some companies like PayPal have launched branded tokens to control payments and margins, not every firm needs its own stablecoin.

Issuing a token requires significant investment in liquidity, compliance, and distribution. Instead, many firms 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, especially where traditional systems are costly or slow.