Plume, a blockchain network specializing in real-world asset finance (RWAfi), has announced the launch of its PayFi Vault, powered by PayPal USD (PYUSD). The PayFi Vault will be available on Nest, Plume’s flagship yield streaming product, bringing onchain payment financing solutions to a global audience.
The vault will initially be backed by PYUSD, a stablecoin fully reserved with U.S. dollar deposits, treasuries, and cash equivalents. Notably, this setup enables businesses and users to access financing options through blockchain technology while maintaining exposure to a regulated and asset-backed digital dollar.
Plume PayFi Expanding Stablecoin Use in Onchain Financing
The PayFi Vault is designed to streamline liquidity for global trade, commerce, and inventory management by facilitating capital optimization for businesses. PayFi, a relatively untapped onchain asset class, focuses on tokenizing financial instruments such as invoices, receivables, and payment obligations.
This approach introduces new yield-generating opportunities for users, leveraging the stability of PYUSD.
Stablecoins like PYUSD play a crucial role in blockchain-based financing mechanisms due to their seamless settlement capabilities and secure backing. By using PYUSD as a liquidity layer, the nPAYFI Vault will offer stablecoin-denominated loans, faster transactions, and reduced currency volatility risks.
Key Features of the PayFi Vault
- Borderless financing: Businesses can access capital without relying on traditional banking infrastructure.
- T+0 settlement: Instant transaction finality eliminates processing delays common in traditional finance.
- Stablecoin-backed lending: Financing will be issued in PYUSD and other stablecoins, ensuring stability and reducing exposure to currency fluctuations.
- Yield generation: Participants in the vault will earn returns derived from real-world payment flows.
Advancing the Real-World Asset Ecosystem
The PayFi Vault aligns with Plume’s mission to integrate real-world assets into blockchain networks. By introducing structured payment financing solutions, Plume aims to improve liquidity and efficiency in global markets.
“RWA-backed stablecoins have evolved beyond just a medium of exchange; they are becoming the backbone of short-term financing solutions,” said Teddy Pornprinya, Co-founder of Plume. “The new PayFi Vault on Nest is a major step toward offering yield from the full potential of onchain payment financing, offering faster settlements, lower costs, and greater financial inclusion.”
Plume has also announced plans for additional financing opportunities through strategic partnerships, further expanding the PayFi ecosystem. As the company continues to develop infrastructure for RWAs, the PayFi Vault represents a significant milestone in integrating payment financing into decentralized finance (DeFi).
