- Experts believe Paypal’s stablecoin could increase TVL.
- An analyst at JPMorgan believes that more companies will choose the Ethereum blockchain in the future.
Analysts at JPMorgan, the largest bank in the United States, believe that the launch of PayPal’s stablecoin could benefit the Ethereum network, The Block reported.
The experts believe that PYUSD could increase the TVL (total value of DeFi protocol assets locked in a smart contract) of Ethereum.
JPMorgan analyst Nikolaos Panigirtzoglou said:
“This could boost activity and increase the utility of the Ethereum network. In the future, more companies will choose the Ethereum blockchain (or its layer 2 platforms) to implement their stable coins or decentralized projects.”
Panigirtzoglou and his fellow analyst at JPMorgan also expressed the view that PayPal’s issuance of a stablecoin will facilitate interoperability between traditional and decentralized payment networks.
“The U.S. does not yet have a clear regulatory framework for stablecoin issuers, and the relaxed terms under which fintech companies operate may change in the future,” they said.
Reminder, PayPal launched its own PYUSD stablecoin on Aug. 7. The very next day, fake tokens appeared online.
Some of the fake tokens have already appeared online.