PayPal is considering launching its own asset-backed stablecoin

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 hopes to further expand its crypto division.

As the name suggests, most stablecoins are backed by an existing valuable asset such as fiat currency, commodities (such as precious metals), or even other cryptocurrencies to stabilize their value.

Steve Moser of The Tape Drive discovered a coin certificate called PayPal Coin in the PayPal iOS app. When the comment is received from BloombergJose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said the company is looking into the stablecoin, adding that if and when they want to move forward, they will work closely with the relevant regulators on the matter.

If anyone has a chance to create a viable stablecoin, it’s PayPal. Founded in the late 90s, a financial technology company has been at the forefront of online payments since then. More recently, PayPal has made significant progress in the crypto space.

After ditching the ill-fated Facebook Libra cryptocurrency in 2019, PayPal began allowing US customers to buy, store and sell four types of cryptocurrency on its platform, and brought similar functionality to Venmo. PayPal also acquired cryptocurrency security firm Curv, increased weekly purchase limits and rolled out its crypto services to UK customers.

Illustration Credit: Coinbase

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