PayPal has held exploratory talks about launching a stablecoin: sources

Quick Take

  • PayPal is exploring the launch of a stablecoin, The Block has learned.
  • Four sources with knowledge of the situation told The Block that PayPal has made the rounds among some of the industry’s stablecoin protocol developers.
  • PayPal announced its foray into crypto services last fall.

PayPal is exploring the launch of a stablecoin, The Block has learned.

Four sources with knowledge of the situation told The Block that PayPal has made the rounds among some of the industry’s stablecoin protocol developers — suggesting the payments giant may be leaning towards working with a third-party company. 

Ava Labs, the team behind the Avalanche blockchain, is one of the organizations that has held talks with PayPal over stablecoin development, according to people familiar with the matter. It is not clear which other protocols have been involved in the discussions.  

A PayPal spokesperson told The Block that “PayPal continues to explore the potential of digital currencies, digital financial services infrastructure and how we can help enhance digital commerce as a trusted partner in the space.”  

“As a global company working with regulators and industry partners throughout the world to shape the next generation of financial systems, the company is in frequent conversation about technologies that enable these goals. However, rumors and speculation are not predictive of the company’s future plans,” the spokesperson said. 

If PayPal did move forward with such a project, it would represent a significant escalation of its work in the crypto space. Stablecoins are digital assets that represent fiat or government-backed currencies, using a blockchain network as a payment rail. There is more than $80 billion in stablecoins circulating in the market today, according to data collected by The Block.