It has been rumoured for some time that PayPal was interested in implementing a stablecoin that could be used for payments, perhaps initially for moving funds between its international bank partners. The question is, will it create its own stablecoin or perhaps use its partner’s existing stablecoin?
Paxos is already used by PayPal and Venmo for its crypto brokerage services but the company also has a U.S.-dollar backed stablecoin called the Paxos Standard (PAX). On April 29th Paxos closed a $300 million Series D round that included participation PayPal Ventures which invested in earlier rounds as well:
“One of the stablecoin developers that PayPal had talked with is Ava Labs Blockchain Company, while the remaining protocol developers that the payments services provider had discussed with remain unknown.
According to BlockchainNews, an unnamed PayPal spokesperson disclosed that as a global company working with regulators and industry partners in shaping the next generation of financial systems, they are in “frequent conversation about the technologies that enable these goals.”
Not an in-house project
One of the sources has indicated that the company would rather work with an outside developer rather than have the stablecoin as an in-house project because doing so would make the process faster.
The company’s primary concern is to have a product out in the market at the soonest time possible.
Rumors about the ambitious plan of PayPal to launch its stablecoin have long circulated and, as a matter of fact, are considered as the best-known secrets in the cryptocurrency industry today.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
