Get ready for some major moves in the crypto space this week! PayPal just leveled up by letting U.S. businesses dive into the world of crypto directly from their accounts. Plus, we’ve got Kamala Harris stepping up her game to woo the crypto voters just in time for the election.
On the DeFi front, Base has crushed it with a total value locked that’s now over $2 billion, solidifying its place in the Layer 2 scene. And don’t miss out on Visa’s latest play with their Tokenized Asset Platform, set to help banks issue fiat-backed tokens on Ethereum.
PayPal Goes Big on Crypto: U.S. Businesses To Buy, Hold, and Sell Crypto Directly
PayPal has announced that businesses in the U.S. can now buy, hold, and sell cryptocurrencies directly from their PayPal accounts. This is a big step forward for PayPal, which has already been offering this service to regular customers for a few years. Now, business owners have the same opportunity to manage crypto as individuals do.
Jose Fernandez da Ponte, a senior vice president at PayPal, said that more and more business owners have been asking for the ability to handle cryptocurrency in the same way that consumers can. PayPal is responding to this demand by expanding its crypto services to business accounts.
In addition to buying, holding, and selling cryptocurrencies, PayPal will also allow businesses in the U.S. to send crypto to external wallets. However, due to stricter regulations, this service will not be available to business customers in New York State right away. PayPal didn’t say when this would change, but it is working on it.
PayPal first started letting consumers buy, hold, and sell crypto in 2020. In 2023, the company also introduced its own stablecoin, called PayPal USD (PYUSD), which has already grown quite popular, reaching a market cap of $1 billion.
Kamala Harris Tries Wooing Crypto Voters
- With just 40 days until the election, Harris has positioned herself as a pro-crypto leader. During recent speeches and fundraisers, she emphasized the importance of blockchain and AI in her administration.
- Harris’ shift is seen as a strategic move to attract over 50 million U.S. crypto owners, whose votes could be crucial in swing states like Michigan, Wisconsin, and North Carolina.
- While her understanding of crypto policies remains vague, Harris’ tech background and the hiring of advisors suggest she’s serious about crypto. However, Trump is seen as more engaged with the industry.
- Despite both candidates’ pro-crypto gestures, neither has laid out a clear policy agenda for crypto regulation, leaving the industry’s future uncertain regardless of the election outcome.
Base’s Total Value Locked (TVL) Surpasses $2 Billion
- Base, a Layer 2 Ethereum network developed by Coinbase, surpassed $2 billion in total value locked (TVL) for the first time, showing a massive growth of 370% since the beginning of the year when it stood at $430 million.
- Base now ranks as the second-largest optimistic rollup by deposits, trailing only Arbitrum in terms of TVL.
- Base operates by processing transactions off the Ethereum mainnet, reducing congestion and increasing efficiency. It only posts data on-chain periodically, which boosts Ethereum’s throughput.
- Decentralized exchange Aerodrome has been the primary contributor to Base’s TVL growth, holding over $1 billion in deposits, followed by Uniswap, which has $220 million.
Visa Platform to Help Banks Issue Fiat-Backed Tokens
- Visa has introduced the Visa Tokenized Asset Platform (VTAP), which allows banks to issue fiat-backed tokens on the Ethereum blockchain powered by smart contracts.
- Spanish bank BBVA will be one of the first institutions to adopt VTAP. It plans to launch a live pilot in 2025, using the platform to tokenize real-world assets (RWAs) like commodities or bonds.
- VTAP will help banks digitize and automate existing processes for exchanging RWAs, enabling near-real-time settlement with fiat-backed tokens.
- Visa has been a critical player in blockchain, processing USDC stablecoin payments on Ethereum since March 2021 and partnering with Brazil’s central bank on its Central Bank Digital Currency (CBDC) pilot earlier this month.
- This new platform is designed to facilitate tokenized asset exchange, aiming to modernize the financial ecosystem by leveraging blockchain technology.
What’s Next?
As we wrap up another quarter in the crypto markets, a positive momentum is building, driven by bullish catalysts like the recent U.S. Fed rate cuts. Historically, Q4 has been a strong period for cryptocurrencies, with Bitcoin delivering average returns of around 88%, positioning it as an exciting time for investors. Looking ahead, key events such as the U.S.
