Paxos Labs Launches: Can Stablecoin-as-a-Service (SaaS) Spark a ‘Hundred Stablecoins War’?

Circle’s soaring stock has ignited capital enthusiasm, and with the U.S. GENIUS Act and Hong Kong’s stablecoin regulations相继 taking effect, traditional enterprises are eyeing the lucrative stablecoin market. Against this backdrop, veteran stablecoin issuer Paxos has launched Paxos Labs, claiming to help institutions ‘issue coins with one click.’ But is the underlying Stablecoin-as-a-Service (SaaS) model reliable?

Paxos Labs: A ‘Stablecoin Infrastructure Toolkit’ for Institutions

On June 19, Paxos officially unveiled Paxos Labs, an initiative incubated internally for six months, positioned as an ’embedded on-chain financial product infrastructure layer.’ Simply put, it aims to help institutions do three key things:
– Issue branded stablecoins: For example, enabling e-commerce platforms to launch ‘XX Coin,’ which users can spend on the platform and integrate into the broader crypto ecosystem.
– Offer yield-generating services: Let users earn interest on their stablecoins through ‘programmable yield vaults.’
– Tokenize traditional assets: Convert bonds, bills, and other assets into tokens for flexible on-chain use.

Its strengths lie in three areas: DeFi-native technology, enterprise-grade reliability, and integration with trusted Real-World Asset (RWA) issuers. The official website has opened applications for collaboration, with the goal of becoming a ‘one-stop shop for on-chain products’ for institutions within 18 months.

Why Bet on SaaS Now? Three Key Market Drivers

Paxos Labs’ focus on ‘Stablecoin-as-a-Service’ represents a shift from ‘issuing coins itself’ to ‘helping others issue coins.’ This strategy hinges on three market logics:

1. Market Potential: From $250B to $3.7T

U.S. Treasury Secretary has predicted the stablecoin market could reach $3.7 trillion by 2035—15 times its current size (around $250 billion)! Post-regulation, stablecoins will also drive demand for U.S. Treasuries (80% of today’s $250B stablecoins are backed by Treasuries), reducing government borrowing costs—a ‘win-win’ for all.

2. Profitability: A ‘On-Chain Central Bank’ Earning Passive Income

Stablecoin issuance is almost a ‘money-printing business’: Tether’s 2024 net profit exceeded $13 billion, and Circle still made $156 million after deducting partner fees. The secret? Using user deposits to buy U.S. Treasuries (yielding 4%-5%), gold, or commercial paper—steady profits with minimal risk. Standard Chartered predicts stablecoins could drive $1.2-$1.6 trillion in Treasury demand by 2028, making issuers the second-largest buyers after the Fed.

3. Payment Trends: From Mobile Payments to Stablecoin Payments

After PayPal’s electronic payments and Alipay/WeChat Pay’s mobile payments, stablecoins are emerging as the next trend. Compared to the slow, costly Swift system, on-chain stablecoin payments offer lower costs and higher efficiency—even giants like Alibaba and JD.com are rushing to enter.

Hidden Risks: Three Hurdles for SaaS

However, ‘profitable business’ doesn’t equal ‘successful business.’ Paxos Labs faces at least three challenges:

1. Easy to Issue, Hard to Distribute

The key to stablecoin success is ‘adoption,’ but distribution channels are monopolized by giants: USDT dominates via Bitfinex and trust in global south markets, while USDC is tied to Coinbase. Together, they control 85% of the market. New stablecoins will struggle to gain traction.

2. Lucrative Yields, Strict Audits

Regulations now require stablecoin issuers to disclose reserve assets, but past scandals of ‘insufficient reserves’ persist. Audit standards will only tighten, weeding out projects without real backing.

3. Narrow Use Cases, Limited Daily Adoption

Currently, stablecoins are mainly used in cross-border trade and crypto transactions, rarely in daily life (e.g., groceries, rides). The shutdown of Infini’s U-Card service highlighted issues: bank resistance, high compliance costs, and lack of profitability.

Conclusion: ‘Hundred Stablecoins War’—Opportunity or Bubble?

Paxos Labs’ entry signals that traditional institutions, crypto firms, and banks will all compete for stablecoin profits—earning interest while boosting valuations with growth stories. Yet ‘stablecoins’ may not be stable: regulatory shifts, money laundering risks, black swan de-pegs—dangers abound. Ultimately, ordinary users could bear the costs.

This game has only just begun.

Read More《“稳定币即服务”时代开启!Paxos Labs化身“稳定币代工厂”，能否撼动USDT/USDC双巨头?》

This content is AI-generated and does not constitute investment advice. Please exercise your own rational judgment.