Paxos Labs closed a $12 million funding round last week, led by Blockchain Capital with participation from Robot Ventures, Maelstrom, and Uniswap. Founded in New York City in 2012, the company is best known for powering stablecoins like PayPal's PYUSD and Global Dollar. The fresh capital will go toward building what the firm calls a 'financial solutions layer' that turns digital assets into practical business products.
Amplify Suite: Earn, Borrow, and Mint in one platform
The recently launched Amplify Suite bundles three core tools on a single platform. Earn lets businesses generate income from crypto holdings; Borrow offers loans secured by digital assets; and Mint enables branded stablecoin issuance. This modular approach lets companies gradually integrate digital asset functions into their operations.
How stablecoins cut business costs
For years, institutional crypto adoption focused on trading, custody, and stablecoin issuance. Yet, as McCain reflects, 'Stablecoins had to be used at a loss for a long time.' The payment benefits are clear: merchants typically pay 2–3% in traditional transaction fees, while stablecoin transfers sharply reduce those costs. Additionally, businesses can earn extra returns on blockchain-held balances.
More advanced models are emerging. Payment providers can now monitor a company's revenue stream in real time and build credit scores from that data, McCain notes. This opens the door for enterprises to access financing based on live payment performance and speed up cross-border transactions. Though still nascent, the groundwork for broader adoption is being laid.
Not every business needs its own token
Many firms dream of launching their own tokens to control payments or boost profits. But starting a new stablecoin is tough, requiring liquidity, compliance, and wide distribution. In most cases, simply integrating existing stablecoins delivers lower transaction costs and new revenue streams.
'If what you want is economic benefit, there's no need to issue your own token,' McCain emphasizes. While the industry warms to this pragmatic approach, the lack of splashy announcements has tempered public excitement.
Still, stablecoin technology is reshaping business margins, unlocking new credit models, and accelerating capital flow. Interest is rising, especially in regions where traditional payment rails remain costly or slow. 'It may not sound thrilling, but the real value is in the numbers,' McCain points out, highlighting how this transformation often unfolds quietly behind the scenes.