PayPal Is Exploring Creating Its Own Stablecoin as Crypto Business Grows

Hidden code in the company’s iPhone app shows that a potential “PayPal Coin” would be backed by the U.S. dollar.

Jan 7, 2022 at 10:54 p.m. UTC
Updated Jan 7, 2022 at 11:00 p.m. UTC

PayPal (PYPL) is looking into launching its own stablecoin as the company grows its crypto business, a company spokesman confirmed to CoinDesk on Friday. Sources told CoinDesk in September that PayPal subsidiary Curv was actively working on developing a stablecoin.

“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,” a PayPal spokesman told CoinDesk in an emailed statement.

Bloomberg first reported the news after evidence of PayPal’s exploration into building its own stablecoin was discovered in the company’s iPhone app by developer Steve Moser and shared with Bloomberg. Hidden code and images show work on what is called a “PayPal Coin.” The code shows the coin would be backed by the U.S. dollar, Bloomberg noted in its report.

PayPal has been very active with its cryptocurrency efforts recently, increasing the amount of crypto its customers can purchase, as well as investing in educating its users on crypto and working to allow them to withdraw their crypto safely to third-party wallets.

A PayPal spokesperson told Bloomberg that images and code inside of the PayPal app stemmed from a recent internal hackathon – an event in which engineers team up to quickly explore and build new products that may never see a public release – within the company’s blockchain, crypto and digital currencies division.

UPDATE (Jan. 7, 23:59 UTC): Added information about Curv in first paragraph.

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Michael Bellusci is CoinDesk's crypto payments reporter.