Note that PayPal has been interacting with digital assets for quite some time, so its desire to create its own stabelcoin seems logical. As a reminder, the platform's management announced Bitcoin integration back in October 2020. This allowed users to purchase the cryptocurrency, hold it in their own accounts, and sell it if necessary. BTC then reacted to the news with significant growth, and PayPal itself made a major contribution to the market's continued bullishness.


As chief executive Dan Schulman noted in April 2021, the company made the right decision. The demand for coins among the platform’s users spoke in favour of it. Read more about Dan’s comments and his remarks about the future of the money in a separate piece.

PayPal and cryptocurrencies

The information regarding the company’s own Stablecoin was confirmed by its vice president of digital asset development and virtual currencies, Jose Fernandez da Ponte. Here is his quote in which he commented on the developments. The remark was published by Cointelegraph.

We are exploring opportunities to create a stabelcoin. If we move in that direction, we will certainly start working closely with the relevant financial regulators.


And that means a spokesperson has made it clear that PayPal will not go the way of Facebook, which wanted to launch its own coin called Libra, but faced resistance from regulators. As a result, the project had to be renamed and changed in earnest, although it still went nowhere.

At the same time, PayPal representatives plan to actively engage with officials to secure their future project and its prospects in this way. Naturally, such an approach seems to be the only right and logical one in the current circumstances.


PayPal CEO Dan Schulman

For now, the stabelcoin project is at an early stage of development and is named PayPal Coin with a logo like the one in the screenshot below. However, it’s likely that this could still change by the release date. Moreover, the goals of the project could also change dramatically, following the example of the already mentioned Libra project.

However, it is hard to believe the prospect of problems for PayPal, because the company has been working with digital assets since the fall of 2020. That means that its employees know the details of crypto from the inside.

PayPal Coin

PayPal representatives also previously noted that the aforementioned stabelcoin code from the iPhone app, found by developer Steve Moser, is only the result of a recent hackathon to create mobile apps for the company. Accordingly, it may be too early to draw conclusions about a future product based solely on this data.

It should be noted that the stabelcoin industry has grown considerably in recent times. The market capitalization of the niche now stands at $151.73 billion, though exactly one year ago the figure was $33.38 billion.

Capitalization graph of stalecoins

Tether USDT remains the leader of the stakes market, accounting for 54.05 percent of the market. Second place belongs to USDC with 28.88 per cent, while BUSD is in third place with 9.24 per cent.

Stablecoin’s share of total capitalisation


We consider that PayPal's decision to move in this direction is in any case correct. Here specifically, it clearly implies even more integration of cryptocurrencies into the platform, which would require stablcoin. Therefore, the release of such a product will in any case prove to be a positive development for the digital asset niche - as will the payment giant's activity in the autumn of 2020.


And how do you see the future of innovation at PayPal? Share your opinion on it in our Millionaires’ Crypto Chat. There we will discuss other important news related to the world of blockchain and decentralisation.