Morning Brew Daily PayPal Enters Crypto Game with New Stablecoin & Warren Buffett is Crushing It Right Now
Aug 8, 2023
PayPal is making waves by launching its first stablecoin, signaling a significant shift in the crypto landscape. Berkshire Hathaway continues to soar under Warren Buffett's guidance, amidst rising tensions with labor strikes in LA. Meanwhile, Campbell's Soup is reshaping the food industry with its $2.7 billion acquisition of Rao's, while Paramount sells Simon & Schuster to a private equity firm. Lastly, a unique trend called 'car bloat' is emerging, reflecting the changing preferences in vehicle sizes and a decline in petroleum engineering interest among students.
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PayPal's Stablecoin
- PayPal launched a stablecoin, PayPal USD, tied to the US dollar.
- This makes it less volatile and more useful for interacting within the crypto ecosystem.
PayPal's Strategy
- PayPal's stablecoin isn't new tech, but it's a strategic move.
- They see regulatory clarity, market share opportunity, and profit potential.
Tether's Profit Model
- Tether, the largest stablecoin, profits by investing customer deposits in high-yield treasury bills.
- They earn 5% yield without paying interest on the stablecoin.