Latest / The Paul Barron Crypto Show / PayPal Moves From Ethereum To Solana | Stablecoin Bull-Run in June

Transcript

PayPal Moves From Ethereum To Solana | Stablecoin Bull-Run in June · The Paul Barron Crypto Show

• 0:07
  Let's dive into stable coins today. We'll take a look at some of the
• 0:10
  projects that could be benefiting from this potential move in the stable coin category.
• 0:16
  We'll break it all down for you. My name is Paul Barron. Welcome
• 0:18
  back in the tech path. I do want to thank our sponsor today and
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  This is one of those that has been around since really the beginning of
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  crypto, and I think it has become one of the titans out there.
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  It is one of the few here in the United States that I think does
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  check it out. Just use our link. All right, let's go into
• 0:58
  a couple of points. I do want to hit on a few things.
• 1:00
  I want to start with this tweet right here, and this is kind of
• 1:03
  the news some of the news of the day. PayPal pyusd officially goes live
• 1:08
  on Salana, enabling swift and secure stable coin transaction over thirty million merchants.
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  Now, I don't know if this is a good thing or a bad thing.
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  We'll kind of talk a little bit about that, but I'd love to
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  get your take on it. If you look at just pyusd in general,
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  and granted it's just now getting started so around market capa around five mil,
• 1:29
  so nothing really to worry about right now. But could this be something that
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  could brew in and be a competitor in the stable coin markets. I think
• 1:38
  that's the thing that many people are looking at. The problem I think that
• 1:42
  you have with any of these is of course always going to be these transaction
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  fees, and as we know, the bigger factor here is getting the mental
• 1:49
  man out of the way and who is going to win that race. There's
• 1:53
  a lot of companies that are out there in that market right now trying to
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  make that. So if you go over to their blog post, this is
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  on mirror for them. By launching on the number two blockchain in the market
• 2:04
  cap and the largest most active ecosystem on Spark contract platforms. We let the
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  world know pyusd is here, so now they're on Solana and then they go
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  further into this talking about Ethereum, and the statement here is kind of interesting.
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  Ethereum mayet offered us in mental awareness, not solely and fulfilled and all
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  criteria needed to achieve py usd's mission on the stable corn of commerce. I
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  think what that simply means is that transaction fees was a little bit of a
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  challenge there. And when you look at PayPal, PayPal works and runs on
• 2:37
  transactions, so this would never have worked. Now will this make a difference
• 2:40
  in Solana in their ecosystem, because the likelihood is we're still going to see
• 2:45
  more fees. I'll show you some of that in a second. We'll get
• 2:47
  into the point of who are going to be the beneficiaries of how these stable
• 2:51
  cooints roll out? Will it be PayPal or others out there. I want
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  to go over to a clip real quick. This clip is PayPal and the
• 3:00
  user demographic. Take a look. An important moment for us was when we
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  enable unchain transfers in twenty twenty two. Basically the ability of depositing, and
• 3:12
  we draw in crypto tokens from Papal and Memo wallets to external wallets so that
• 3:16
  you can interact with the Web three ecosystem from your PayPal account, and that
• 3:22
  actually changed a lot the profile of our users. We still have those crypto
• 3:27
  careers that people who are having their first experience in crypto with us, but
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  now more and more we have people who are more sophisticated users who like the
• 3:35
  idea of having easy on drums and off rams through PayPal and Memo for their
• 3:40
  Web three activity. All right, So a couple of points that they made
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  there on and off ramps. This is something that we've talked about for quite
• 3:49
  some time, and that is there's just been a supreme limitation of on and
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  off ramps here, at least here in the United States and really in some
• 3:58
  countries around the world. But that's the point that I think PayPal is getting
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  at is they've kind of been i won't say selected, but they've been in
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  a position where they can at least allow that whether this makes for an expansion.
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  The good thing is is that when you look at the DNA of their
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  users, their crypto users, so that's something that they've of course discovered,
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  and it looks like this might flow out. The question will this be a
• 4:21
  short term of use of pyusd and then moving into other things, or will
• 4:29
  pyusd actually become a stakeholder in the look of how the crypto market's going to
• 4:34
  go on stable coins. Here's an example right here of their current size and
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  let me kind of zoom in on that. For you guys, four hundred
• 4:41
  and twenty six million active users. That's a lot. I mean, you're
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  talking about half a billion users worldwide, pretty big. And then if you
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  look at Venmo right here, there's another seventy eight million right there on Venmo.
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  So they've got definitely the captive audience to be able to transition in should
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  will be is always going to boil back down to one thing, one thing
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  only, I think in crypto that really when you look at it, crypto
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  is trying to displace, and that is the fees and the middlemen could PayPal
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  possibly reserve themselves out of that, or would they be one of those companies
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  that gets caught in the middle. I want to go to a clip right
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  here. This kind of explains it a little bit more. Take a look.
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  In our case, we have the PayPal wallet and we have the Venmo
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  wallet, and they are both part of the PayPal ecosystem, but they are
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  different wallets, and for the longest time, you could not send money directly
• 5:31
  from a PayPal account to Aveno account. Now that we have the stable coin
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  enabled on both of them, Now from your paper wallet you can send a
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  stable coin to Avenment wallet and and the other way. Sometimes I spend a
• 5:46
  lot of time in rooms where people are asking, why do you really need
• 5:48
  blockchains to do this? Is we could do this without a blockchain. The
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  fact. The fact is that at least in our case, until we deployed
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  block chains to use it, we didn't have a solution for that. Anything
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  about all companies that are going to be operating on you know, stable coins
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  in the future, the interoperability is going to be the key thing that really
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  makes this explode. All right, So let's take a look at coin market
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  cap right here, and you can kind of see their volume right now,
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  around fifteen million. Kind of slow, but the point being is that it's
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  just getting started. They don't have any trading pairs yet, so could this
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  be something that will grow? I'm just kind of curious would you use something
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  like this as opposed to say tether or you know, USDC in your use
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  case. This is the thing that I think will cause the problem. This
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  is a clip. Take a look. I believe that we will see changes
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  in the modernization model of stable coins, and traditionally the way that issuers have
• 6:44
  monetized the stable coins have been through interest in the reserve. Hopefully we can
• 6:48
  make it faster and cheaper, but we still believe that the monetization will come
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  through transaction fees. All right, So they're still in the camp of transaction
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  fees. That's really the business model. You look at their standard rate for
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  receiving domestic transactions right there. I mean, those are the fees guys right
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  there, almost four percent on fixed fees for checkouts, guest checkouts. You
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  can kind of see even their lowest rate, which is two to nine that's
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  on QR code transactions to third party integrators. So I think this is still
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  a challenge that most everybody is not really ready for yet. And this includes
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  the credit card companies, companies like PayPal who are still just stacking on top
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  of the blockchain versus true projects and companies out there that are going down to
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  zero or almost zero fees, because I think that's where it's going right now,
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  it's a race to zero. Take a look at this right here.
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  This, of course is MasterCard trying to stay relevant, and this is the
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  exact same thing. They launched a thing called crypto Credential, which is going
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  to allow you to send cryptocurrency to customers at an exchange with your username.
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  Now, this is an argument that I have around security because I don't think
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  anybody should be giving up their user names on anything. Bank accounts, you
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  know, sure, Okay, your social media username, that's different, but
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  any of your secure areas, your username should be different, and it should
• 8:09
  be something that you kind of protect. So that's always been a thing with
• 8:11
  me in terms of how social engineering happens and how people can get to your
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  hacks. So those are problems that I think would exist in those kind of
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  things. But again, MasterCard, along with VS and many others, trying
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  to solve a solution because they know that the freight train is coming down the
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  track. All right, Let's jump over to the site right here USCC cool
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  just to show you the fast moving chains out here that are active. Most
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  mostly there's Solana coming in number three, bases moving up and it flips Solana
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  not too long ago. And then of course it's on the heels of maybe
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  could it ten x and be the one that could be the real use case
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  possibly something over what PayPal has been doing. Or is PayPal going to win
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  this because of the size and just the overall reach that they have half a
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  billion users worldwide that I think is going to be the question going forward.
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  Let me go to this right here, breaking two under fifty million USDC has
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  just been mended by Circle, So setting up treasury on Salana. Are they
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  going to do a big announcement over at consensus this week? Something's up here?
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  What could it be? Things are starting to move Also, remember this
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  is the month coming up June around what we'll see around regulatory alignment with stable
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  coin, which is going to be I think still one of the most important
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  regulatory clarity scenarios that play out. All right, So if you go to
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  this chart, this of course is just the stable coin markets and crypto regulation.
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  This is the Mika Bill regulation, I should say in the EU this
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  is really where crypto was put on the map. June was the key date
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  here and this is when stable coins start to enact inside the EU, This
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  of course will put more pressure on the United States, and I think maybe
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  countries around the world, including Asia South America, that we'll see a lot
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  more adoption of stable coin regulation and more implementation. So that's the thing that
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  MasterCard, PayPal, all these major fintech companies are preparing for. And this
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  also sets up a very good timing here in the US in terms of regulatory
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  alignment. Here's Tom Emmer. Listen in others are developing their digital coins.
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  You mentioned the CCP. China's ahead of us. This is the coming thing
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  as you there's a workshop actually here tomorrow on this issue. And I wonder,
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  as you look down the road in version of a true digital cash solution,
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  a central bank digital currency possible down the road. Do you see that
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  possibility one day? Is there a path for what you say? I think
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  anything's possible, But you're talking to a sixty three year old guy who's never
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  coded anything in his life. All of the smart people out here can tell
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  me if that's possible. All I wanted to do, if the government or
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  the people that developed this for the government, can create a digital cash that
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  emulates cash open, permissionless and private with a capital p Okay, then we
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  have to look at it, I believe. But until you can do that,
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  and I'm not so convinced you can. And by the way, you
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  want to really take us to the next level, you come up with solid
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  stable coin legislation that is a dollar backed stable coin that can be created and
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  traded anywhere around the world. I guess what You're going to see the digital
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  asset space go to a whole new level, much like you've just seen in
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  the last month or two, as we start to move these things through Congress
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  and people recognize, no, no, this is a trillion plus market cap.
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  This ain't going away. So I think Amer has hit this before.
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  He's been on our show a couple of times. He's been an early adopter
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  of where blockchain technology is going. You know, his framework of you know,
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  digital cash a little bit loose there. I wouldn't necessarily agree with that,
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  but I do agree with the fact that he sees the opportunity here from
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  stablecoins. Stable Coins are going to open up an unbelievable, immense amount of
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  opportunity I think in all sorts of businesses as well as the blockchain community.
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  And obviously we'll see this in digital assets. What digital assets will start to
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  really benefit from this, Well, there's a handful that you could probably take
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  a look at. This chart kind of gives you a little bit of an
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  insight you think about real world assets. This is most likely going to be
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  one of the bigger categories out there that will have an effect on stable coin
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  usage. And then of course, right there, guess what's right behind it?
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  Mean coin setting it almost thirty four percent right there, you kind of
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  go down the list here social there's some DeFi stuff in there, deepen data
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  services, all the way down into like bitcoin, bitcoin of courses right there
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  kind of at the lower level. All right, so there's an opportunity real
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  world assets. Let's go to that. Take a look at where we're going.
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  If you just look at stable coins right now market caap one hundred and
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  fifty eight billion, this is going to explode even more so than what you're
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  seeing on screen. You look at also the ones that I kind of zoom
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  in on that right there on that sidebar, Notice what we have this coming
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  soon real estate. That's most likely going to be a major category for use
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  of stable coins. We'll probably see more and more transactions. We had propy
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  on too long ago, their CEO talking about some of those kinds of features
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  that I do believe will have some very intriguing positive nature of how business will
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  be done. All right, So if you think about people in the volume
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  and you put real estate in the equation, obviously that's going to blow things
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  up just because of the value ratio. Block Square is one project that we're
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  watching. They're announcing they've tokenized more than one hundred million. This is a
• 13:46
  small amount right now. One hundred million. Okay, that's barely a neighborhood
• 13:50
  in most South Florida areas. We're making a major achievement. Also launching ocean
• 13:54
  Point. This is kind of their new marketplace tool. This is kind of
• 13:58
  interesting because it could scale up, in other words, for a lot of
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  real estate agents companies out there that are in companies that are marketing real estate
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  opportunities. I could also see a lot of REITs starting to do things like
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  this again to really real estate investment trust things of that nature. You look
• 14:16
  further into their website and you see this right here. It's their white label
• 14:20
  program. So you launch your real estate investment portal without coding so it's kind
• 14:24
  of a squarespace I guess for real estate investment portals out there. This could
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  get big and you plug in stable coin and a regulatory environment and all of
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  a sudden, real world assets could be one of the biggest sectors we see
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  out there in the space. So I'm watching the token. Just to give
• 14:41
  you an example, here's the all time on this one block square token.
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  So this is what I'm watching. It could be something kind of interesting to
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  kind of keep an eye on. Propy was the other one that we've looked
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  at, even though it's fallen off a little bit here in the past a
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  little bit. This is in the one year. Let me go to the
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  seven day and kind of see this decline right here. Is this in a
• 15:00
  position to where it could it itself could also jump up or is there some
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  competition that could be brewing in the space around who could be the winner here
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  in terms of real world assets for real estate. Wrapping up, I want
• 15:13
  to kind of talk about meme coins, and this gets into the fact that
• 15:18
  we're seeing so much meme coin craze going on right now. In fact,
• 15:22
  meme coins have now knocked out Cardono out of the top ten so that in
• 15:24
  itself, that's a pretty big deal. Because you've got Doze now taking over
• 15:28
  in the top ten, we'll most likely see others starting to make it into
• 15:33
  the top twenty twenty five. And again this is usually one of the first
• 15:37
  entry points of brand new crypto users, and then people start to realize what
• 15:41
  blockchain can be used for. I still think that we're going to see brands,
• 15:46
  loyalty systems, all of that's going to be built around Meme kind of
• 15:50
  concepts out there in the future. The marketing concept of Meme tokens and what
• 15:56
  they've done to really create communities, it's almost unmatched. There hasn't been anything
• 16:00
  like it out there. A great case study, I think for marketing people
• 16:03
  to kind of take a look at me and Quinn takeover. Here's Peppy surpassing
• 16:07
  market value of all major NFT collections combined. So that in itself, look
• 16:14
  at the size of that. That's crazy. That just shows you, guys,
• 16:17
  this is the kind of thing that sparks innovation. And this is probably
• 16:22
  just the beginning of all of this. So you got to stay tuned right
• 16:26
  here on the show for all that good stuff. All right, if you're
• 16:29
  not part of the Diamond Circle. Make sure and get in right now.
• 16:30
  It's a great place to get additional content. And make sure and follow me
• 16:33
  out there on X at Paul Barrett. We'll catch you next time right here on Techpath