The payments world is blanketed by financial intermediaries, each extracting a toll for their services. Creating a stablecoin involves PayPal buying a basket of currencies and holding these yen, euros, rupees, won and so on in banks across the world. Once PayPal tokenizes the currency backed by those bank deposits, it has a private, multicurrency money supply that exists outside the global banking system and is free of any third-party toll collectors, Quigley explained.
Source: https://www.coindesk.com/business/2023/09/18/tether-co-founder-sizes-up-paypals-stablecoin-ambitions/?utm_medium=referral&utm_source=rss&utm_campaign=headlines