24 June 2021
Online Payment Operator PayPal is again trying to deepen its roots in the crypto world by considering to launch its own fiat-backed stablecoin.
Four anonymous sources familiar with the matter told TheBlock that PayPal is discussing with several different developers, including Ava Labs, around the potential launch of their stablecoin. There are speculations that PayPal could likely depend on a third-party company to develop the firm's coin.
PayPal has been pushing into the crypto space relatively aggressively. Last month, the payments behemoth had acquired crypto custodian Curv and collaborated with Coinbase, which assisted in raising Series D funding for the blockchain startup- Paxos.
PayPal's newly added features over the past last year enables users to buy, sell and hold cryptocurrencies. PayPal's mobile payment service Venmo launched 'Crypto on Venmo' a year ago, and PayPal conveniently offers within its native software 'Checkout with Crypto', allowing crypto holders in the US to pay for online purchases. It currently supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Coinbase also launched 'Buy With PayPal' in tandem.
In response to The Block's article, a PayPal representative told the outlet that the company "continues to explore the potential of digital currencies, digital financial services infrastructure and how we can help enhance digital commerce as a trusted partner in the space".
PayPal's recent moves to engage further in the crypto space, along with the current partnerships and acquisitions for the firm, suggest a new stablecoin is certainly not out of the realm of possibility. This news also comes to the market after a statement from PayPal CEO Dan Schulman expressing that demand for cryptocurrencies has increased tremendously compared to expectations.
PayPal has business collaboration in over 200 countries and over 100 global currencies and conducted over 15 billion payments worth nearly $1T USD last year alone.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.