These changing conditions would make a stablecoin vastly more appealing for PayPal, for two straightforward reasons. First, as Da Ponte implied, the extended services enabled by a stablecoin may encourage users to hold a larger amount of money in the form of PYUSD, and to hold it longer. In theory, that could happen if there are simply more ways to use PYUSD than a conventional PayPal balance – for instance, for crypto trading on DeFi platforms. Those larger overall collateral balances would produce more interest for PayPal on the back end.
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