In letter: PayPal is looking into the possibility of launching its own stablecoin, a type of cryptocurrency that is financially backed by another asset, as it looks to further expand its crypto division.
As the name suggests, most stablecoins are backed by an existing asset of value, like fiat currency, exchange-traded commodities (such as precious metals) or even other cryptocurrencies, as a way to stabilize their value.
The Tape Drive’s Steve Moser discovered evidence of a coin called PayPal Coin within PayPal’s iOS app. When reached 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 seek to move forward, they will work closely with relevant regulators on the matter.
If anyone has a shot at making a viable stablecoin, it’s PayPal. Founded in the late 90s, the financial technology company has been at the leading edge of online payments ever since. More recently, PayPal has made meaningful headway into the crypto space.
After backing away from Facebook’s ill-fated Libra cryptocurrency in 2019, PayPal started allowing customers in the US to buy, hold and sell four types of cryptocurrency on its platform and brought similar functionality 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