PayPal, the American payments giant, is looking into launching its own stablecoin as the company grows its crypto business. Bloomberg reported in September that PayPal subsidiary Curv was actively developing a stablecoin.
PayPal told Bloomberg in an emailed statement: “We are exploring the possibility of launching a stablecoin; if and when we move forward, we will be working closely with relevant regulators.”
PayPal’s exploration into building its own stablecoin was first revealed by Bloomberg after developer, Steve Moser found evidence of the company’s exploration in its iPhone app. Bloomberg reported that hidden code shows work on a “PayPal Coin.” The code shows the coin would be backed by the greenback.
PayPal has been very active in its crypto assets’ initiatives recently, increasing its customers’ access to crypto and educating its users about it. Developing a way to withdraw cryptocurrency safely to third-party wallets.
PayPal told Bloomberg that the images and code inside the PayPal app came from an internal hackathon within the company’s blockchain, crypto and digital currencies division – an event where engineers quickly explore and build new products that may never see the light of day.
In October 2020, PayPal allowed its US customers to store crypto assets, then enabled them to purchase supported cryptocurrency from the platform’s 29 million merchants the following March.
In addition to not charging fees for holding crypto assets, the payment company charges a small transaction fee at or below 2.3%.
A major advantage of using PayPal for crypto purchases is that it extends the same level of fraud protection as it does for fiat currency purchases.