According to a PayPal insider, PYUSD, the company’s new stablecoin, will eventually become live on decentralized finance (DeFI) systems in the future.
Jose Fernandez da Ponte, senior vice president of blockchain, cryptocurrency, and digital currencies at PayPal, discusses the company’s plans for PYUSD, which was introduced earlier this month, in a new interview with host Laura Shin on the Unchained Podcast.
“I believe DeFi will be a part of the first wave since DeFi is a use case for going where crypto users are already using stablecoins. Only PYUSD is now available on the PayPal wallet. Although we are ramping up production, the aim is for the product to be distributed through the major exchanges, at which point anyone will be able to utilize it for the typical use cases.”
Da Ponte continues by saying that because PYUSD is actually an ERC-20 token and complies with New York rules, it is already compatible with Ethereum (ETH) wallets.
“The Ethereum network hosts the ERC-20 token stablecoin PYUSD, which can be transmitted outside to wallets that support ERC-20 tokens.
Undoubtedly, a component of it relates to being a stablecoin that is fully regulated and supported. As you are aware, we operate out of New York. The issuer is Paxos, and the token has received approval from the New York DFS (Department of Financial Security). New York has very rigorous rules around KYC (Know Your Customer) and anti-money laundering measures, so it is necessary to be able to have the necessary controls in place.”
