In short: PayPal is exploring the possibility of launching its own stablecoin, a type of cryptocurrency that is financially backed by another asset, as it seeks to further expand its crypto division.
As the name suggests, most stablecoins are backed by an existing valuable asset, like fiat currency, exchange-traded commodities (like precious metals), or even other cryptocurrencies, in order to stabilize their value.
Steve Moser of the tape drive discovered proof of a coin called PayPal Coin in the PayPal iOS app. When attached for comment by Bloomberg, Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said the company was exploring a stablecoin, adding that if and when they looked to move forward, they would work closely with them. regulators concerned on the matter.
If anyone has a shot at making a viable stablecoin, it’s PayPal. Founded in the late 90s, the fintech company has been at the forefront of online payments ever since. More recently, PayPal has made significant strides in the crypto space.
After moving away from Facebook’s ill-fated Libra cryptocurrency in 2019, PayPal began allowing customers in the United States to buy, hold, and sell four types of cryptocurrency on its platform and brought functionality. similar to Venmo. PayPal also acquired crypto security firm Curv, increased weekly purchase limits, and rolled out its crypto services to customers in the UK.
Illustration credit: Coinbase