This proposal is authored by Diegoebasta - I am an amateur financial analyst and have written some articles for the financial blog Seeking Alpha under the pseudonym “Atom Research”;
PayPal Holdings has recently made a significant move by introducing its own stablecoin. This development represents the first entry of a prominent credit services public company into the cryptocurrency market and it has garnered substantial media attention; it is likely that other financial public companies may decide to create their own stablecoin to get their share of profits from investing cash reserves - obtained by selling crypto to their users - into government bonds, that given current interest rates, yield up to 5% p.a.
Paypal has created a stablecoin with many flaws, using an old version of solidity and with questionable functions that allow Paypal to freeze user assets; additionally, it has been launched on Ethereum and, given the large number of Paypal users (400 million), if only a few million will transition, this may cause clogging of the Ethereum chain and higher gas fees. Given these flaws, better technical solutions may surclass Paypal’s stablecoin.
Leveraging on its large treasury as a guarantee of reliability and stability, Mantle DAO should propose a notable public company such as Western Union, Discover Financial Services or Capital One Financial (or even Visa and Mastercard!) to develop a stablecoin on the Mantle Network, discussing all the mutual benefits in terms of visibility and possible profits, and how a stablecoin on a Layer 2 and with a better smartcontract would overcome all the flaws related to Paypal’s coin and would represent a formidable competition to PayPal in the crypto sector.
Mantle DAO would offer the technical expertise in developing the coin, while one of the companies above would benefit from offering its clients the possibility to transfer cryptocurrency at almost zero fees internationally and get an additional revenue stream, possibly offering clients in less developed countries the possibility to pay for goods and services using their stablecoin and payment network (Western Union would be perfect). Such a strategic move has the potential to not only enrich the Mantle ecosystem but also serve as a potential avenue for ByBit to navigate regulatory challenges in the United States. This transformation could signify a substantial shift for Mantle towards real-world utility, potentially positioning it alongside Ethereum and Bitcoin in terms of significance.
Risks: In my opinion this proposal has no downside but only upside
Costs: negligible; developing a smartcontract for a stablecoin costs a few thousand dollars; the expenses associated with backing the stablecoin and marketing efforts should rest with the public company for the most part.