The Rise of Stablecoins and Privacy Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: Yahoo Finance
- Financial Position of Stablecoins: Stablecoins like USDT and USDC have evolved from mere crypto trading tools to significant buyers of US Treasuries, highlighting their increasing importance in global payments and anti-inflation efforts, particularly in the Global South.
- PayPal's Innovative Payment Solution: PayPal's 'Pay with Crypto' solution allows merchants to accept crypto payments with instant conversion to stablecoins or fiat, reducing international transaction fees by up to 90%, which significantly enhances payment efficiency and competitiveness for small businesses.
- Need for Privacy Layer: While PayPal's system makes strides in privacy protection, its reliance on centralized trust introduces risks, particularly for larger enterprises, as the lack of protocol-level privacy could lead to compliance and audit challenges.
- Prospects of Fully Homomorphic Encryption: Fully Homomorphic Encryption (FHE) enables stablecoin transactions to be processed without decryption, promising enterprise-level privacy protection in the future; although scalability is still being improved, recent tests show a capability of 20 transactions per second, indicating strong potential for development.
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Analyst Views on PYPL
Wall Street analysts forecast PYPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PYPL is 72.86 USD with a low forecast of 51.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
6 Buy
19 Hold
4 Sell
Hold
Current: 54.080
Low
51.00
Averages
72.86
High
100.00
Current: 54.080
Low
51.00
Averages
72.86
High
100.00
About PYPL
PayPal Holdings, Inc. offers a technology platform. The Company’s products are designed to enable digital payments and simplify commerce experiences for consumers and merchants to make selling, shopping, and sending and receiving money simple, personalized, and secure, online or offline, including mobile. It provides consumers with a digital wallet that enables them to send payments to merchants securely using a variety of funding sources, which include a bank account, a PayPal or Venmo account balance, its consumer credit products, a credit card, a debit card, certain cryptocurrencies, or other stored value products. It operates a global, two-sided network at scale that connects consumers and merchants with 434 million active accounts across approximately 200 markets. Its brands include PayPal, Braintree, Venmo, Xoom, Hyperwallet, PayPal Zettle, PayPal Honey, and Paidy. It offers financing products through the PayPal Working Capital (PPWC) and PayPal Business Loan (PPBL).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Family Celebrates USD1 Stablecoin Success
- Market Capitalization Milestone: The dollar-pegged stablecoin USD1 from World Liberty Financial achieved a market capitalization of $5 billion on Wednesday, demonstrating its strong performance in the decentralized finance sector and solidifying its market position.
- Trump Family Endorsement: Co-founder Donald Trump Jr. highlighted this milestone on social media, emphasizing the importance of focusing on infrastructure over noise, which reflects the family's confidence and support for USD1.
- Competitive Edge: USD1 has outperformed PayPal's stablecoin in the market, showcasing its competitiveness in the fintech space and potentially attracting more institutional investors' interest.
- Price Dynamics: According to Benzinga Pro, the WLFI token is currently trading at $0.1617, down 0.38% in the last 24 hours, indicating the market's volatility and the complexity of investor sentiment surrounding the stablecoin.
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PayPal's Future Outlook: 2026 May Bring a Turning Point
- Strong User Base: PayPal boasts 438 million active accounts, and despite stock price fluctuations, its revenue and earnings per share have grown by 246% and 353% respectively over the past decade, underscoring its leadership in the global fintech sector.
- Attractive Valuation: With a current price-to-earnings ratio just above 11, the market undervalues PayPal, as this valuation is more fitting for a struggling business rather than a strong performer with consistent revenue and profit growth.
- Share Buyback Strategy: The management has repurchased 20% of shares over the past five years, reflecting confidence in the company's future and creating value for shareholders, potentially laying the groundwork for a stock rebound.
- Strategic Partnership Outlook: The collaboration with OpenAI will integrate PayPal's payment technology with ChatGPT's global merchant network, expected to serve as a significant growth catalyst, potentially enhancing the company's market performance.
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