As the crypto business grows, PayPal is exploring creating its own stablecoin.
PayPal (PYPL) is considering launching its own stablecoin as the company expands its crypto business, according to a company spokesman confirmed on Friday. In September, sources told that PayPal subsidiary Curv was working on building a stablecoin.
In an emailed response, a PayPal representative said, "We are researching a stablecoin; if and when we wish to move forward, we will of course, work with with relevant regulators."
After developer Steve Moser discovered evidence of PayPal's study into establishing its own stablecoin in the company's iPhone app and shared it with Bloomberg, Bloomberg broke the storey. Work on a "PayPal Coin" is shown through hidden code and pictures. The code indicates that the coin would be backed by the US dollar, Bloomberg noted in its report.
PayPal has been particularly active in its cryptocurrency efforts recently, boosting the amount of cryptocurrency that its customers can buy, as well as investing in crypto education and striving to allow users to safely withdraw their crypto to third-party wallets.
A PayPal spokesperson told Bloomberg that the images and code in the PayPal app came from the company's blockchain, crypto, and digital currencies division's recent internal hackathon – an event in which engineers collaborate to quickly explore and build new products that may never see a public release.