PayPal Holdings Inc. explores launch of its own stablecoin as part of its cryptocurrency push, according to the company, which confirmed the development after evidence of the move was discovered inside its iPhone app.
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,” Jose Fernandez da Ponte, Senior Vice President of cryptocurrencies and digital currencies at PayPal, said in a statement to Bloomberg News.
Evidence of the company’s exploration into building a stablecoin was first discovered in PayPal’s app by developer Steve Moser and shared with Bloomberg. Hidden code and images show work on what is dubbed a “PayPal Coin.” The code indicates such a coin would be backed by the U.S. dollar.
The images and code inside of the PayPal app is said to have 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.
Stablecoins are cryptocurrencies backed and priced by the value of an existing currency or commodity.