Payment giant PayPal may allegedly be preparing to create a stablecoin.
Four anonymous sources said PayPal has spoken to some of the industry’s stablecoin protocol developers, according to allegations in the news outlet The Block. this may indicate that the payments giant may be inclined to work if they are a third-party company.
Ava Labs, the team behind the Avalanche blockchain, is one of the organizations engaged in discussions on developing stablecoin with PayPal, according to people with knowledge on the subject. It is not clear which other protocols are being negotiated.
According to the news source, a PayPal spokesperson used the following statements:
PayPal is trying to explore the potential of digital currencies, its digital financial services infrastructure and how we can help develop digital commerce as a trusted partner in this field.
As a global company working with regulators and industry partners around the world to shape the next generation of financial systems, the company frequently talks about the technologies that make these goals possible. However, rumors and speculation do not reveal anything about the company’s future plans.
PayPal’s progress in such a project could show that its work in the crypto space has increased significantly. Stablecoins are assets that use a blockchain as a payment network, representing fiat currency or government-backed currencies. There are currently more than $ 80 billion of stablecoins in circulation.
Another source used the following statements:
They seem more likely to do something with an existing stablecoin partner rather than build something on their own because I think this will get to market faster – I think this is their primary concern.
PayPal move, “best known secret in the crypto world”
Rumors about PayPal’s stablecoin targets have been circulating for a long time. As a matter of fact, one source described this move as the best known secret in the crypto industry.
Last fall, PayPal announced that it would provide crypto purchases and sales on its platform through a partnership with crypto startup Paxos. PayPal has since taken action to expand the scope of its crypto offerings.
Cryptocoin. com, on March 8, PayPal announced that the crypto security firm and multi-party computing (MPC) initiative Curv had completed the acquisition.