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Snail Games (SNAL), a publicly-traded video game studio, said on Tuesday that it is mulling the development of its own U.S. dollar stablecoin.
The company is evaluating the technical, legal, and financial hurdles to issuing a proprietary stablecoin, according to a press release. To support the effort, Snail retained George Cao, founder of the crypto exchange AscendEX, as an external consultant. The company has also engaged a crypto-focused law firm to help navigate compliance challenges.
No firm timeline has been set, and the initiative remains exploratory.
The stock jumped as much as 20% on the news before shedding some of the gains, closing the session 8% higher.
"This stablecoin exploration is a natural evolution of our innovation-led strategy and will support a broader effort to evaluate how blockchain-based technologies could be aligned with the company’s long-term goal to be at the forefront of digital transformation in the entertainment space,” co-CEO Hai Shi said in a statement.
Stablecoins are cryptocurrencies pegged to fiat currencies like the U.S. dollar, and are increasingly popular to transfer value quickly and with fewer intermediaries through blockchain rails. With impending U.S. regulation of the sector, major banks and large retailers like Walmart and Amazon are said to explore issuing stablecoins.
For a company like Snail, integrating stablecoins could open doors to blockchain-based game economies, player-driven marketplaces or cross-border monetization, without relying on traditional payment rails.
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