In a note to investors, RBC Capital analysts Mark Mahaney and Zachary Schwartzman reportedly said that Facebook’s long-rumored stablecoin project “may prove to be one of the most important initiatives in the history of the company.”
A part of the Royal Bank of Canada (RBC), RBC Capital predicted that the social media giant’s cryptocurrency project will “unlock new engagement and revenue streams.”
According to the report, RBC Capital expects the project’s white paper to be released on June 18, joining other sources that expressed similar expectations earlier this month. In the note to investors, the investment bank promised to provide an analysis of the paper as soon as it is released in order to “help investors analyze the underlying cryptoeconomics of the token.”
To date, RBC Capital has predicted that Facebook will use its crypto initiative to facilitate three spheres of its business: applications and gaming, payments, and commerce. Earlier this month, CNBC reported that Facebook will allow its employees to receive part of their salary in its internal cryptocurrency.
Meanwhile, RBC Capital also has an outperform rating on Facebook, with a price target of $250 per share. At press time, Facebook’s share rose around 1.8% to trade at $180.4, up more than 35% over the past year, according to CNBC.
Earlier today, the Financial Times reported that Facebook hired Standard Chartered Bank’s head of public affairs Ed Bowles for its cryptocurrency project. Yesterday, the Wall Street Journal published an article revealing that Facebook’s crypto project was supported by over a dozen companies including Visa, Mastercard, PayPal and Uber.