Stablecoins can help businesses turn costs into revenue, Paxos Labs cofounder says
Firms using stablecoins can reshape margins by cutting costs, unlock credit and earn yield, but not every company needs to issue a token, Paxos Labs’ Chunda McCain said.
What to know:
- Stablecoins are entering a new phase in which companies focus less on basic infrastructure and more on concrete business uses, such as yield and credit, Paxos Labs cofounder Chunda McCain said in an interview.
- Businesses can tap lower payment costs and new revenue streams by using stablecoins, but not every company needs its own token capture those benefits, he added.
- Paxos Labs raised $12 million to build a utility stack that lets firms earn yield, borrow against digital assets and issue branded stablecoins.
“The first step was getting a stablecoin,” McCain said in an interview with CoinDesk. “The next question is: what now?”
Last week, Paxos Labs underscored that direction by raising $12 million in a strategic funding round led by Blockchain Capital, with participation from Robot Ventures, Maelstrom and Uniswap. The lab unit was incubated under Paxos, the New York-based digital asset firm behind popular stablecoins such as PayPal’s PYUSD (PYUSD) and the Global Dollar (USDG). Paxos itself builds stablecoins and the immediate underlying infrastructure, while Paxos Labs intends to build tooling for further use of those stablecoins.
With the fresh funds, Paxos Labs is building what it calls a “financial utility stack” that lets companies turn digital assets into products through a single integration.
