Stablecoins enable enterprises to convert expenses into income, according to a Paxos Labs co-founder
Companies leveraging stablecoins can optimize profit margins by reducing expenses, access financing, and generate returns, yet token issuance isn’t essential for every organization, Chunda McCain of Paxos Labs explained.
Key points:
— Stablecoins are transitioning to a stage where businesses prioritize practical applications like yield generation and credit access over foundational infrastructure, according to Paxos Labs co-founder Chunda McCain.
— Organizations can benefit from reduced transaction fees and new income sources through stablecoin adoption, though token creation isn’t necessary to gain these advantages, he noted.
— Paxos Labs secured $12 million to develop a utility framework enabling firms to earn returns, secure loans against digital assets, and launch custom stablecoins.
The $300 billion stablecoin sector initially emerged as a quicker cross-border payment solution, but enterprises are now exploring deeper applications.
This evolution marks a new adoption phase, according to Chunda McCain, Paxos Labs co-founder, who notes the industry is progressing beyond foundational infrastructure toward practical business applications.
«The initial step involved creating a stablecoin,» McCain told CoinDesk. «Now we’re asking: what comes next?»
Paxos Labs recently highlighted this trajectory by securing $12 million in strategic funding led by Blockchain Capital, with Robot Ventures, Maelstrom, and Uniswap participating. The lab operates as an incubator under Paxos, the New York-based digital asset company responsible for popular stablecoins like PayPal’s PYUSD and Global Dollar (USDG). While Paxos develops stablecoins and their core infrastructure, Paxos Labs focuses on creating tools for expanded stablecoin utilization.
Using these funds, Paxos Labs is developing what it terms a «financial utility stack» allowing businesses to transform digital assets into products through single integration.
Its newly released Amplify Suite combines three essential tools: Earn, which provides returns on digital assets; Borrow, enabling lending against assets; and Mint, supporting custom stablecoin creation. This approach allows companies to integrate tokens into operations, then gradually add capabilities.
Transforming expenses into income
For years, enterprise crypto adoption emphasized initial capabilities like trading, custody, or stablecoin issuance. These foundational steps opened possibilities but seldom produced direct returns, McCain explained.
«Stablecoins have functioned as loss leaders for years,» he noted.
The real potential emerges from how these assets are utilized. Payments represent a clear opportunity: merchants typically surrender 2% to 3% in fees, while stablecoin networks can reduce these expenses and generate returns on onchain balances.
«You transform what was always an expense into income,» he explained.
Some innovative applications combine payments and credit. Payment processors already monitor merchant revenues and cash flow, positioning them to underwrite loans, McCain argued.
This could enable merchants to access financing based on real-time performance while earning returns on incoming payments and settling instantly across borders. Though these models remain in early stages, the foundational elements are beginning to converge, he said.
Not all businesses require custom tokens
To achieve these advantages, not every organization needs to create its own stablecoin.
While companies like PayPal launched branded tokens to control payments and margins, creating one demands substantial investment in liquidity, compliance, and distribution.
«If you only need the economic benefits, you don’t need to build your own,» McCain said.
Many organizations can instead integrate existing stablecoins and still benefit from reduced costs and additional returns.
This shift may lack the excitement of major companies like Western Union announcing their own tokens, but it delivers measurable impact on business operations.
Stablecoins are beginning to transform profit margins, enable credit access, and change global money movement, particularly where traditional systems remain expensive or slow.
«It might seem unexciting, but this is the mathematics,» McCain said.