BREAKING DOWN PAYPAL’S STABLECOIN STRATEGY

Summary from the TLDR Crypto newsletter

PayPal announced earlier this week it is making a strategic entry into the stablecoin space with PYUSD, presumably aiming to capitalize on the profitability Tether has experienced with this business model. With existing distribution to hundreds of millions of users, it seems that PayPal will attempt to onboard users to its native stablecoin and then monetize the same way Tether does: through interest bearing assets. This is likely just the start of traditional Web 2.0 and traditional finance companies getting into the stablecoin game, given how attractive the business model is.