According to a source within PayPal, the company is planning to launch its new stablecoin PYUSD on decentralized finance (DeFi) platforms in the future.

In an interview with Laura Shin on the Unchained Podcast, Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, Crypto, and Digital Currencies, stated that PYUSD, which was recently released, will be made available on cryptocurrency exchanges and will be compatible with DeFi ecosystems.

DeFi is an essential use case for stablecoins

He explained that DeFi is an essential use case for stablecoins, and PayPal wants to go where crypto users are already using them.

Currently, PYUSD is only accessible on the PayPal wallet, but the company is working to distribute it to other major exchanges. Once this distribution is complete, users will be able to use it for traditional use cases.

According to Da Ponte, PYUSD is already compatible with Ethereum wallets since it is technically an ERC-20 token. Additionally, it is fully backed and compliant with regulations in New York.

As an ERC-20 token, PYUSD can be sent to wallets that allow ERC-20 tokens.

It is important to note that this stablecoin is fully backed and regulated, with Paxos as the issuer and approval from the New York DFS. In order to adhere to strict KYC and anti-money laundering provisions, the necessary controls are in place.

PayPal recently made the news following the company’s entry into the cryptocurrency market.

As the first major financial company to issue its own stablecoin, PayPal users in the U.S. will soon be able to transfer PYUSD between their PayPal account and supported external wallets, make purchases, and convert it to and from other supported cryptocurrencies.

The stablecoin will also be available to a large and growing community of external developers, wallets, and web3 applications, and can be easily adopted by crypto exchanges.

Stay tuned for more news from the crypto space.

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