Paxos Labs says stablecoins boost business margins

Stablecoins are entering a new adoption phase focused on real business use cases, with Paxos Labs saying firms can turn payment costs into revenue streams.

The company raised $12 million in a funding round led by Blockchain Capital to build tools that enable yield generation, lending, and branded stablecoin issuance.

“The first step was getting a stablecoin,”

Said Paxos Labs co-founder, Chunda McCain, adding:

“The next question is: what now?”

Paxos Labs is developing a “financial utility stack” through its Amplify Suite, offering products like Earn for yield, Borrow for lending, and Mint for token issuance.

McCain said stablecoins can reduce payment fees of 2% to 3% while allowing businesses to earn yield on balances, effectively transforming a traditional cost centre into a revenue stream.

The firm added that not every company needs to issue its own token, as integrating existing stablecoins can deliver similar economic benefits with lower complexity.

Stablecoins are increasingly being used to unlock credit, improve cross-border payments, and reshape financial operations, though adoption remains in its early stages.