Snail Games (SNAL), a publicly-traded video game studio, announced on Tuesday its consideration of developing its own U.S. dollar stablecoin. This strategic exploration aligns with the company’s innovative approach towards enhancing digital transactions within the gaming industry.
The initiative aims to evaluate the technical, legal, and financial challenges associated with issuing a proprietary stablecoin. According to a press release, Snail has retained George Cao, founder of the crypto exchange AscendEX, as an external consultant to guide the project. Additionally, a crypto-focused law firm has been engaged to navigate the compliance hurdles that come with such an endeavor.
Though no definitive timeline has been established, the news has already sparked significant interest in the market, with Snail’s stock surging up to 20% before settling at an 8% increase by the close of the trading session.
Co-CEO Hai Shi emphasized, “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.”
Stablecoins, which are cryptocurrencies pegged to stable fiat currencies like the U.S. dollar, are gaining traction as a means of efficiently transferring value with reduced reliance on intermediaries through blockchain technology. As the U.S. regulatory landscape surrounding cryptocurrencies evolves, reports suggest that major banks and large retailers like Walmart and Amazon are also considering launching their stablecoins.
For Snail Games, integrating a stablecoin could unlock new possibilities, including blockchain-based game economies, player-driven marketplaces, and innovative monetization avenues that transcend traditional payment methods.
Read more: ‘Crypto Week’ Hits a Roadblock as House Cancels Makeup Vote for Crypto Bills
