PayPal Holdings, the American fintech behemoth, has reportedly confirmed its intention to launch its own stablecoin, PayPal Coin.
Developer Steve Moser discovered the development of an in-house stablecoin in the source code of Paypal’s iPhone app.
PayPal’s SVP of crypto and digital currencies, Jose Fernandez da Ponte, told Bloomberg in response to the evidence discovered on the PayPal app.
The American fintech giant told Bloomberg: “We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.”
Moser’s discovery revealed that the fintech giant is developing a PayPal Coin, which will be backed by the US dollar.
However, a PayPal representative clarified that the iPhone application’s source code was created during a recent hackathon.
While PayPal’s digital asset is being developed, the name, logo, and features of the in-house token may change before its launch.
PayPal has previously launched new features that allow users to buy, hold, and pay with digital coins, thereby supporting ongoing development.
da Ponte also stated in a November 2021 interview that PayPal has “not yet seen a stablecoin out there that is purpose-built for payments.”
According to him, a stablecoin should support large-scale payments while also ensuring network security, and he adds:
“There would need to be clarity on the regulation, regulatory frameworks, and the types of licenses required in this space.”
In addition to launching its own stablecoin, PayPal has taken proactive steps to expand crypto-related services in jurisdictions other than the United States.
The company announced the launch of new Bitcoin trading services for the UK market in September 2021.
Customers can trade major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).