Blockchain, the largest cryptocurrency wallet provider, is looking to partner with one stablecoin by the end of 2019, CEO Peter Smith told The Block. The company has its sights on becoming one the biggest names in the crypto market and says it has “an obsession” with pegged cryptocurrencies.
“There’s a big race between stablecoins right now… Everyone is competing very hard to get their stablecoin out there and to have distribution. I think that market’s going to be really interesting. We will make a move in there soon,” said Smith.
Smith would not disclose what exactly the partnership would entail, but talked about “adding” a stablecoin. This likely means its users will be able to store the selected stablecoin in the Blockchain wallet. Blockchain, which previously invested in several unspecified stablecoin projects, offers a large distribution platform with 32 million wallets, “most of them active,” according to Smith.
“I think all major stablecoin projects at the moment believe they need us,” Smith said. “The question is which one do we decide that we need?” Since its inception in 2011, Blockchain.com has managed 100 million transactions, having originally raised $70 million from the likes of Digital Currency Group and Google Ventures and recently launching an OTC trading desk. The company also has a stablecoin working group.
However, early indications suggest the company could be leaning towards partnering with Paxos.
“Currently the stablecoin being used the most, outside of Tether, which everyone forgets, is Paxos. Paxos has the most trading volume and the most liquidity and the biggest outstanding number…[But] they don’t have a prime retail partner to carry their brand right now,” Smith said.
Blockchain’s stablecoin report also hinted that the company saw the greatest opportunity with Paxos.
Paxos Standard (PAX) is currently traded on over 20 exchanges, including Binance, which simultaneously lists Tether, TrueUSD and USD Coin. Binance doesn’t currently list the Gemini dollar despite previous negotiations.
Smith added that Blockchain’s commitment to stablecoins was because he felt more popular coins like bitcoin have become more of an investment than a viable transaction tool.
“We’ve used stablecoins as almost the oil or the gas that makes this whole engine of a new consumer finance ecosystem possible. We’re not here to just make it easy to invest in bitcoin. We’re here to build a better way of giving people financial services… We’ve gone very deep on the stablecoins. We’re all about stablecoins.”
Redefining consumer finance will require stable assets that can be used in the real world, Smith said. As a result, he wants to help his clients hold such assets independently of banks, while also driving up usage.
“For us, stablecoins give us the power of giving everyone a US dollar checking account. If you think about that, it’s kind of crazy. There’s no challenger bank with 30 million bank accounts. At the same time as we do that, we’ll be doing it in a way that allows them to still control their funds, to still be financially sovereign individuals.”
Smith said the deal, whatever its details may be, would “probably shift the market.”