New Blockchain.com CEO Interview Reveals Intention of Unnamed Stablecoin Partnership in 2019
Peter Smith, the CEO of Blockchain.com, recently was the subject of an interview with The Block on January 21st.
Many different topics of interest arose during the conversation, but one particular point that attracted attention was their intention to form a new partnership soon. Specifically, the CEO revealed that they want to collaborate with a stablecoin project by the end of the year, though the specific project remained unnamed.
Based on this information, it looks like Blockchain.com wants to list a stablecoin on the platform. This would be a major benefit to their 32 million wallets, considering that most of them are presently active. Smith introduced the topic, saying,
“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.”
Smith has plenty of faith in the desire for their platform to be used by other stablecoin projects, saying that “they need us.” However, taking the dominant role, Smith added, “The question is, which one do we decide that we need?”
Blockchain.com has been around since 2011 and has been the host of 100 million transactions. When they first launched, they raised $70 million in funding from both Digital Currency Group and Google Ventures, ultimately launching an OTC trading desk recently. Still, some information shows that the best option could be Paxos. Speaking on Paxos, Smith said,
“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.”
With the recent stablecoin report from Blockchain, it also looks like they see the best opportunity with Paxos.
Presently, PAX can be found on 20 different exchanges. Furthermore, the reason that Smith has been more committed to stablecoins is due to the transition that Bitcoin has had lately from investment to a practical transaction tool. Smith elaborated, saying,
“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.”
Stable assets for the real world are absolutely necessary for changing the world of finance. Smith hopes to make it possible for their clients to remain independent from banks, eliminating their need to rely on their accounts to hold assets.
This change would also help Blockchain, considering that the use of the platform would rise considerably. Explaining, Smith noted,
“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.” No matter what the details end up being, Smith believes that it will “probably shift the market.”