Shopify could become the latest to integrate DeFi ecosystem

Written by: Ali Raza
April 5, 2021
  • Shopify started accepting PAX, USDC, and other crypto-assets as a method of payment since 2014.
  • Shopify’s boss wants to know what role the platform will play in the DeFi sector that will excite users.
  • Many DeFi power players responded, with some suggesting that Shopify should enable stablecoin payments.

Tobi Lutke, Chief Executive Officer of subscription-based platform Shopify, hinted that the subscription-based platform may soon enter the cryptocurrency space. He revealed this via his Twitter handle, adding that he has already started “dabbling” with Ethereum (ETH).

Lutke also stated that he has been exploring the Decentralized Finance (DeFi) sector for some time. He said the main goal is to better understand how the ERC20 works.

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Shopify is one of the biggest streaming platforms with over 1 million subscribed businesses and 500,000 active stores. Its market share is only surpassed by eBay and online shopping giant Amazon.

Shopify has been one of the early adopters of cryptocurrency as a medium of payment for its services. The platform started accepting PAX, USDC, and other crypto-assets as a method of payment. The next step, as hinted by Lutke is the integration of the platform with the DeFi protocol.

More interests in the DeFi sector

The tech space has been going agog with the integration of DeFi into several functionalities. Several companies have launched or are preparing to launch products channeled towards the DeFi ecosystem.

Along with this increased interest in the DeFi sector, the cryptocurrency industry has also seen increased adoption in recent months.

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Shopify asked to enable stablecoin acceptance

In a bid to know the thoughts about the DeFi ecosystem and what role Shopify could play in it, Lutke asked the crypto community a related question. He asked,

What are the commerce-related opportunities that you are most excited about? What role do you want Shopify to play?

Several DeFi power players responded to his questions, with some suggesting that Shopify should enable cash in the platform’s accounts to earn yield using DeFi protocols. Others also said Shopify should enable stablecoin payments on the platform.

More responses were suggesting the leverage of deposited funds for real-time subscription fees and payments.

It’s not clear whether Shopify will implement all these suggestions or when any of them will be implemented. But the platform’s interest in decentralized finance integration is proof of the expansive growth of the ecosystem.