In a groundbreaking development within the decentralized finance (DeFi) sector, Plume, the first Layer 1 blockchain purpose-built for Real World Asset Finance (RWAfi), has announced the upcoming launch of its PayFi Vault on its flagship yield streaming product, Nest.
This new vault will be powered by PayPal USD (PYUSD), aiming to revolutionize payment financing by bringing it on-chain and utilizing institutional-grade stablecoin-backed assets.
Bridging Traditional Finance and DeFi
Plume’s integration of PYUSD into its PayFi Vault signifies a strategic move to bridge traditional payment systems with decentralized financial mechanisms.
By leveraging PYUSD—a fully reserved stablecoin backed by dollar deposits, U.S. treasuries, and cash equivalents—the PayFi Vault establishes a secure and stable foundation for on-chain payment financing. This integration not only enhances liquidity but also offers users globally access to institutional-grade financing opportunities.
Understanding the PayFi Vault
According to the announcement by Plume Network, the PayFi Vault is designed to provide last-mile liquidity for the supply chain, effectively powering global trade, commerce, and inventory management.
By tokenizing payment financing solutions such as invoices, receivables, and payment obligations, the vault unlocks sustainable yield offerings that were previously inaccessible to a global user base. Stablecoins like PYUSD play a crucial role in this ecosystem, serving as a reliable and efficient means of transferring value, thereby facilitating faster settlements and reducing costs associated with traditional financing methods.
Our PayFi vault with @PayPal USD on @NestCredit is coming soon to expand financing opportunities onchain.
Stablecoins are the original RWA – real dollars onchain that are moving trillions, proving that the digital dollar works.
— Plume Network – RWAfi L1 (@plumenetwork) March 4, 2025
The Role of Stablecoins in Payment Financing
Stablecoins, particularly those fully backed by real-world assets like PYUSD, are increasingly recognized as digital dollar standards. Their stability and regulatory compliance make them ideal for integration into DeFi platforms seeking to offer secure and efficient financial services.
In the context of Plume’s PayFi Vault, PYUSD acts as a stable liquidity layer, enabling users to participate in yield-generating activities without the volatility risks associated with other cryptocurrencies. This integration underscores the evolving role of stablecoins in facilitating real-world financial applications within the DeFi landscape.
Democratic Senator Kirsten Gillibrand has played a significant role in the GENIUS Act, a bipartisan bill that, if passed, will regulate the use of stablecoins in the United States. But, as a lead co-sponsor of the bill, Gillibrand’s involvement in its passage comes with its share of controversy.
In an investigation into campaign financing during the 2024 federal election cycle, BeInCrypto found that the combined donations from individuals associated with prominent crypto firms—including Coinbase, Ripple, Uniswap Labs, Andreessen Horowitz, and dYdX Trading—exceeded $200,000 for the New York Senator’s campaign.
The GENIUS Act: A Step Closer to Federal Stablecoin Regulation
On Monday night, the Senate advanced the GENIUS Act concerning stablecoins by approving a procedural vote. This vote was for cloture, which limits debate and prevents a filibuster.
The road to getting there was difficult. During a previous Senatorial reunion on May 8, the same vote failed to advance to the final round of discussions. Nine Democratic senators – including Gillibrand – retracted their initial support of the bill during that round of debate.
Opposition to the bill stemmed from several concerns. These included inadequate consumer protections, potential risks to national security, and apprehension regarding how the legislation might be affected by or even exacerbate issues related to President Donald Trump’s involvement in different crypto ventures.
During this latest round, some of those Senators, like Delaware Senator Blunt Rochester, decided to greenlight the bill, while others, like New Jersey Senator Andy Kim, remained unconvinced.
What’s certain is that the US is closer than ever to national crypto legislation on stablecoins. Senator Gillibrand’s efforts significantly influenced the road to get here. Her negotiating skills have been instrumental in securing sufficient Democratic support for the bill at every step.
However, her connections to the crypto industry raise questions about her motivations for advocating its passage.
Which Crypto Firms Contributed to Gillibrand’s Campaign?
Gillibrand has been a Senator for her home state of New York since 2009. Last year, she was re-elected to office for a fourth term.
According to OpenSecrets, a non-profit organization that tracks and publishes campaign finance and lobbying data, Gillibrand received tens of thousands of dollars from individuals representing different crypto entities during the last election cycle.
The sum of contributions from donors associated with Coinbase toward Gillibrand’s 2024 election campaign. Source: OpenSecrets.
Under US federal law, corporations generally cannot donate directly to congressional campaigns. This prohibition applies to contributions from a corporation’s treasury funds.
Nonetheless, OpenSecrets monitors contributions from individuals, who are typically required to disclose their employer when donating.
Considering this information, in 2024, contributors associated with Coinbase were the tenth-largest corporate donors to Off the Sidelines, Senator Gillibrand’s leadership PAC. Together, they donated $59,900 to her re-election campaign.
Following its lead, venture capital firm Andressen Horowitz donated $57,000 to Gillibrand’s efforts. In 16th place was Uniswap Labs, where individuals contributed $48,900.
Ripple donors came in 40th place, contributing a total of $32,000. Further down the list was dYdX Trading, donating $19,200.
Gillibrand received $217,000 in total from these different crypto entities. Searching through the Federal Election Commission (FEC) database, BeinCrypto revealed the identities of some of these independent contributors.
Key Individual Donors to Gillibrand’s Leadership PAC
According to data compiled by the FEC, Gillibrand’s leadership PAC received $366,043.12 worth of individual contributions between 2023 and 2024.
Combining these contributions, BeInCrypto found 10 individual donations from prominent figures who listed Coinbase, Ripple, and Uniswap Labs as their employers.
Individual contributors from Coinbase, Ripple, and Uniswap who donated to Off the Sidelines. Source: FEC.
Under the Federal Election Campaign Act, individuals are generally limited to donating $5,000 per calendar year to a traditional Political Action Committee (PAC). This limit applies per election cycle, meaning separate donations can be made for primary and general elections.
Among Coinbase-associated names were CEO Brian Armstrong and Chief Operating Officer Emilie Choi, who donated a total of $8,300 to Gillibrand’s leadership PAC during last year’s primary elections.
In the case of Uniswap, CEO Hayden Adams and Chief Legal Officer Katherine Minarik each donated $3,300. Marvin Ammori, also a Chief Legal Officer, donated a sum of $7,300 on three separate occasions.
BeinCrypto found no individual contributions from dYdX or Andressen Horowitz employees to Gillibrand’s leadership PAC.
Is Crypto Funding Influencing Congressional Impartiality?
Campaign financing from prominent names in the crypto industry, whether from political action committees or individual contributors, became a household activity during last year’s elections.
According to a report by Public Citizen, Behemoths like Coinbase and Ripple Labs each contributed $50 million to Fairshake, the crypto super PAC that spent $119 million during the 2024 federal elections.
In fact, OpenSecrets labeled Fairshake as one of the few Super PACs that qualify as bipartisan committees. Crypto contributions toward Republican and Democratic candidates alike demonstrate the industry’s broad range of investments to achieve a brighter regulatory future for crypto in Washington.
But they also raise questions over the impartiality of congressional representatives like Senator Gillibrand when it comes to voting on legislation that will directly impact the businesses of the very actors who contributed to their political campaigns.
As global crypto adoption accelerates, the United States remains hesitant. Despite rising interest in digital assets worldwide, U.S. institutions are still dancing around the idea of making Bitcoin part of a national reserve strategy.
And according to investor Kevin O’Leary, that dance won’t be ending any time soon.
“It Will Never Happen,” Says Kevin O’Leary
Shark Tank star and outspoken investor Kevin O’Leary isn’t buying the idea – at all. Speaking candidly, O’Leary dismissed the proposal of a U.S. Strategic Bitcoin Reserve, pointing to the lack of bipartisan support and calling out what he sees as self-interest from advocates like MicroStrategy’s Michael Saylor.
“Strategic Bitcoin Reserve will never happen. Michael Saylor is talking about his book.”
While he shot down the Bitcoin reserve notion, O’Leary did highlight the importance of stablecoin regulation. He predicted that forthcoming legislation would reduce transaction costs globally, potentially paving the way for widespread digital dollar adoption.
U.S. Institutions Continue to Shy Away
The Strategic Bitcoin Reserve Bill, introduced by Senator Cynthia Lummis, has sparked mixed reactions across party lines. While states like North Carolina have backed similar efforts, others – including Oklahoma – have firmly rejected them.
Economists remain divided. A recent University of Chicago survey found no consensus among experts regarding Bitcoin’s viability as a national reserve asset. The main concern? Bitcoin’s volatility and its uncertain role within traditional monetary frameworks.
Saylor and Scaramucci Push Back
Despite O’Leary’s skepticism, not everyone agrees. Anthony Scaramucci, managing partner at SkyBridge Capital, voiced support for the bill, arguing it could boost the U.S. economy.
He also echoed comments from tech entrepreneur David Sacks, who urged a bipartisan approach and warned that a Republican-only push might be reversed if political power shifts.
Michael Saylor shows support through action. His company, Strategy, recently added a jaw-dropping $180.3 million in Bitcoin, raising its total holdings to 555,450 BTC, with plans to accumulate even more. Saylor remains a vocal supporter of the reserve bill and sees Bitcoin as a cornerstone of future financial infrastructure.
The U.S. isn’t the only country wrestling with Bitcoin’s place in official reserves. The European Central Bank, under President Christine Lagarde, has clearly stated that Bitcoin won’t be part of its reserves anytime soon.
On the flip side, El Salvador has already integrated Bitcoin into its national holdings despite strong pushback from the IMF – highlighting the global split in digital asset policy.
For now, Bitcoin may be winning in the court of public interest, but whether it secures a seat at the national table remains a high-stakes waiting game.
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As global crypto adoption accelerates, the United States remains hesitant. Despite rising interest in digital assets worldwide, U.S. institutions are still dancing around the idea of making Bitcoin part of a national reserve strategy. And according to investor Kevin O’Leary, that dance won’t be ending any time soon. “It Will Never Happen,” Says Kevin O’Leary …
Galaxy Digital may have lost faith in Ethereum and is angling for a massive offload of ETH tokens in the near future. The financial services firm has moved 23,900 ETH to Coinbase in a move that triggered sell-off concerns for the largest altcoin.
Is Galaxy Digital Selling Off Its ETH Holdings?
Fresh on-chain data suggests that Galaxy Digital is jockeying to sell off a substantial portion of its Ethereum holdings. According to an X post by Lookonchain, the firm has transferred 23,900 ETH, worth a staggering $42 million, to Coinbase.
Galaxy Digital moved the ETH holdings from its OTC wallets in multiple transactions, transferring the holdings to Coinbase in under eight hours.
“OTC wallets of Galaxy Digital have deposited 23,900 ETH ($42.52M) to Coinbased in the past 8 hours,” wrote Lookonchain.
The ETH transfers have since sparked concerns of an incoming sell-off by the financial services firm. Traditionally, whales moving a significant amount of their holdings to centralized exchanges are a tell-tale sign of an incoming asset sale.
Sentiment for a sell-off is high in this case, given the sheer volume of ETH transfers to Coinbase and Galaxy Digital’s previous track record. Last week, Galaxy Digital offloaded ETH to purchase SOL on Binance, triggering a price slump for the largest altcoin.
Why Is The Firm Selling Off Its ETH?
Recent plays are indicating a changing stance by Galaxy Digital toward Ethereum. Previously, the firm went on an ETH accumulation spree with CEO Mike Novogratz buying a significant number of assets.
The financial services firm is now turning its gaze toward Solana from Ethereum, given the wave of market challenges faced by ETH. An unenthusiastic price performance that sees Ethereum struggle to hit $2,000 and Solana’s glowing metrics is dousing Galaxy Digital’s enthusiasm for the largest altcoin.
Despite the moves, the recent ETH sales may be short-term efforts by the firm to meet its immediate liquidity needs. Furthermore, the movement of funds may be a change in internal custody processes and not an actual sale.
Ethereum price is holding its own since Galaxy Digital moved its ETH holdings to exchanges. ETH is trading at the $1,800 mark with whales scooping 10M ETH in a show of faith in the beleaguered asset.
