Reports indicate that PayPal could be looking into launching its own stablecoin. This will be a bold step towards total crypto adoption.
PayPal, an online payment service provider, is joining many companies in adopting cryptocurrencies. Besides using cryptocurrencies as a payment method, companies are looking for ways to gain more exposure in the market by venturing into other crypto assets.
A recent publication reveals that sources with knowledge about the development state that PayPal is engaging with several developers such as Ava Labs to develop their own stablecoin. It is more likely that PayPal will work with a third party to create stablecoin.
Ava Labs has its own crypto known as AVAX. Since the beginning of the year, AVAX has been doing well, but its bullish trend has slowed down. Besides, the firm has announced its partnership with the Graph and Alliance Block to help it improve its business processes.
PayPal’s move towards crypto
Launching a stablecoin will not be the first step that PayPal is taking towards diving into the crypto space. Besides integrating a crypto checkout service, PayPal has also acquired Cury, a crypto custodian firm. In addition, it has also partnered with Coinbase for a Series D funding round that was in support of Paxos.
PayPal’s affiliate, Venmo, had also launched a ‘crypto on Venmo’ feature. At the beginning of this year, PayPal launched a ‘Checkout with Crypto’ service that targeted US residents. The service will allow US consumers to pay for online purchases using Bitcoin, Bitcoin Cash Ethereum, and Litecoin. PayPal is looking to launch this service on a global scale. Coinbase is also working with PayPal to establish a ‘Buy with PayPal’ feature for crypto traders.
Venturing deeper into the crypto space
The revelation about PayPal’s move to launching a stablecoin is proof that the payments giant is exploring maximizing the potential of digital currencies. It is also looking to create a robust digital financial infrastructure and how it can improve digital commerce.
The decision by PayPal to venture further into the crypto market and the increasing partnerships and acquisitions show that launching a stablecoin will happen soon. The revelation also comes days after Dan Schulman, PayPal’s CEO, noted that the demand for cryptocurrencies increased significantly.
PayPal’s market dominance in the payment service sector is very huge. It has a presence in more than 200 countries, and it deals with at least 100 fiat currencies from different jurisdictions. The firm has completed over 15 billion transactions and dealt with around $1 trillion in 2020.
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