Blockchain.com, the worlds leading provider of crypto wallets, has announced that it will list a stablecoin. Though it has declined to specify which, there is reason to believe it is Paxos. Whichever stablecoin is listed will receive a significant boost in adoption and penetration into a very competitive market.
Peter Smith, the CEO of Blockchain.com, spoke to The Block and said not only that his company was looking to list a stablecoin, but in fact is currently ‘obsessed’ with the possibilities that a cryptocurrency pegged to an established value can provide. Smith went on to say that, if adopted, stablecoins could ‘give us the power of giving everyone a U.S. dollar checking account,’ and make crypto a world payment platform.
Stablecoins exploded in 2018, with a large variety replicating the model established by Tether. As of now, a broad number of successful stablecoins are real contenders to being used as the standard. As Smith says, ‘Everyone is competing very hard to get their stablecoin out there and to have distribution.’ For this reason, whichever token Blockchain.com chooses will get a desperately needed boost in recognition and a widespread acceptance.
Smith seems well aware of how important this choice is, stating ‘I think all major stablecoin projects at the moment believe they need us.’ Its plausible that Blockchain.com is being cautious about their announcement precisely because when they specify who they are backing, it will cause a massive traction in the market towards that coin.
The Block, for their part, claims there is reason to believe that Blockchain.com might be looking most strongly at Paxos. Blockchain.com has already released a stablecoin report (https://www.blockchain.com/research) which puts Paxos in a good light, and during the interview Smith noted ‘Paxos has the most trading volume and the most liquidity and the biggest outstanding number.’ On the other hand, Smith did also qualify that ‘they don’t have a prime retail partner to carry their brand right now.’
We believe the power of #stablecoin lies in its ability to facilitate #transactions so we aim to share with the community our redemption volume and processing time weekly from this week on.$PAX pic.twitter.com/Md206KLZ3q— Paxos Standard (PAX) (@PaxosStandard) January 16, 2019
Its certainly much too early to tell what coin Blockchain.com will go with, as the only given timetable is that the partnership will be announced by the end of the year. Still, the announcement shows that stablecoins will likely be a significant issue for crypto in 2019.