Earn provides yield on digital assets held on-chain. Borrow allows firms to use those assets as loan collateral.
Stablecoin News
Paxos Labs closed a $12 million funding round last week to build tools that let companies generate revenue from stablecoins they already hold. Blockchain Capital led the round, with Robot Ventures, Maelstrom, and Uniswap also participating.
The company operates as a separate unit under Paxos, the New York-based firm behind stablecoins including PayPal’s PYUSD and the Global Dollar, known as USDG. Paxos handles stablecoin issuance and core infrastructure, while Paxos Labs builds the product layer that sits on top.
Co-founder Chunda McCain said in an interview with CoinDesk that stablecoins are entering a new phase. Companies that spent recent years acquiring stablecoins are now asking how to make them work harder. “The first question was getting a stablecoin,” McCain said. “The next question is: what now?”
Paxos Labs is using the fresh capital to build what it calls a financial utility stack. The product, named the Amplify Suite, packages three tools, Earn, Borrow, and Mint, into a single integration. Earn provides yield on digital assets held on-chain. Borrow allows firms to use those assets as loan collateral. Mint supports the issuance of branded stablecoins. Companies can start with one tool and add others over time.
McCain described stablecoins as having functioned as “loss leaders for years.” Businesses adopted them to access faster payment rails, but rarely generated direct returns from holding them. The Amplify Suite is designed to change that equation. Merchants currently pay between 2% and 3% in traditional payment processing fees. Settling payments on stablecoin rails can reduce those costs and allow on-chain balances to earn yield at the same time.
Credit is another area McCain highlighted. Payment providers that process merchant cash flows can see revenue performance in real time, which positions them to extend financing based on live data rather than historical credit assessments. Merchants could earn yield on incoming payments while accessing credit and settling cross-border transactions without delays. McCain acknowledged these models are still in early stages.
Companies do not need to issue their own stablecoin to capture these benefits, according to McCain. Launching a branded token requires investment in liquidity management, compliance systems, and distribution. Firms that only need the economic advantages, lower fees and yield on balances, can integrate existing stablecoins instead. McCain pointed out that the less visible integrations carry more practical impact for most businesses than high-profile token launches. The $300 billion stablecoin market is increasingly being shaped by how companies use stablecoins internally rather than by which firms issue new ones.
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