PayPal may likely collaborate with an existing stablecoin company instead of creating “something themselves”.
Online payments company PayPal Holdings Inc (NASDAQ: PYPL) is reportedly seeking to launch a stablecoin. News on PayPal’s attempt to launch a stablecoin was revealed by four knowledgeable sources about the matter.
Citing the sources, The Block said that PayPal may be partnering with another company regarding the development of its stablecoin. The sources revealed that PayPal has already made rounds among some stablecoin protocol developers.
Specifically, the sources said that PayPal has discussed with Ava Labs the stablecoin development. Speaking to The Block, a PayPal spokesperson said:
“PayPal 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. As a global company working with regulators and industry partners throughout the world to shape the next generation of financial systems, the company is in frequent conversation about technologies that enable these goals. However rumors and speculation are not predictive of the company’s future plans.”
In addition, a source told The Block that PayPal may likely collaborate with an existing stablecoin company instead of creating “something themselves.” The source believes that the partnership would help PayPal establish its stablecoin in the market faster. According to the source, “that’s their [PayPal] primary concern.”
PayPal and News on Stablecoin Launch
Rumors on PayPal launching its own stablecoin started when the payment company announced its debit into the crypto space in October 2020. PayPal partnered with industry startup Paxos to offer the new crypto services to its customers. After PayPal said its crypto services, an executive at Coinshares noted that PayPal may issue its token.
The CSO at Coinshares, Meltem Demirors, said that she “wouldn’t be surprised if PayPal launches “its own digital currency similar to a digital dollar that we see in many payments companies.” According to the CSO, PayPal leaving the Libra Association may push the company to launch its token.
Since its debut into the crypto space, PayPal has expanded and has now widened its crypto offerings. In March, PayPal said that its US customers can now use their cryptocurrencies to pay its global online merchants. PayPal CEO Dan Schulman pointed out that the development marks the first time buyers can “seamlessly” use their digital assets the same way as a debit or credit card on their PayPal wallet.
After closing at $259.09, PayPal stock is currently down 0.59% to $257.55 at pre-market trading. Except for declining 3.62% in the last five days, PayPal has been rising over the past year. Records show that the payment company has gained 106.56% in the last twelve months. Also, it added 10.63% since the year began. In addition, PYPL stock has jumped 4.01% in the last three months and climbed more than 2% over the past month.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.