Snail games (Snal)A publicly traded video game studio said Tuesday that it mulls the development of its own US dollar stablecoin.
The company assesses the technical, legal and financial obstacles to issue a proprietary stablecoin, according to a press release. To support the effort, Snail George Cao, founder of Crypto Exchange Ascendex, preserved an external consultant. The company has also engaged a cryptophocused law firm to help navigate compliance challenges.
No fixed timeline has been set and the initiative remains exploratory.
The stock jumped as much as 20% on the news before throwing some of the winnings and closing the session 8% higher.
“This stableCOin investigation is a natural development of our innovation-controlled strategy and will support a broader effort to evaluate how blockchain-based technologies could be adapted to the company’s long-term goal of being at the forefront of digital transformation in the entertainment room,” Co-Ceo Hai Shi said in a statement.
Stableecoins are cryptocurrencies linked to Fiat currency such as the US dollar, and are still more popular for transferring value quickly and with fewer intermediaries through Blockchain rails. With impending US regulation of the sector, large banks and large retailers such as Walmart and Amazon are said to explore the issuance of stablecoins.
For a company like Snail, the integration of stableecoin’s open doors to blockchain-based gaming economies, player-driven marketplaces or cross-border income generation without relying on traditional payment rails.
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