PayPal Reportedly Considering Its Own Stablecoin

PayPal Holdings (NASDAQ: PYPL) is determined to go even deeper into the world of cryptocurrencies, if a recent media article proves accurate. On Monday, cryptocurrency news site The Block reported, citing "four sources with knowledge of the situation," that PayPal has held discussions with numerous stablecoin developers; one specifically mentioned was blockchain specialist Ava Labs. This, the site suggests, indicates that the company could be soliciting partners to develop such a currency.

Unlike a traditional cryptocurrency like Bitcoin (CRYPTO: BTC), which essentially exists as a stand-alone instrument, a stablecoin is pegged to a "real world" asset such as the U.S. dollar. This theoretically makes it a more stable investment, although in practice there is no such thing as a "stable" financial product -- even the hardest of hard currencies or bluest of blue chip stocks experience volatility at least once in a while.

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Source Fool.com