Cybersecurity firm Cloudflare has announced plans to launch its own stablecoin, to be called NET Dollar. The digital currency will be pegged to the U.S. dollar and will be backed by reserves to maintain a stable value. This development would mark the first stablecoin issued by a major technology company since new U.S. legislation concerning stablecoins was passed in July.
The NET Dollar is specifically designed to enable artificial intelligence systems to execute fast and automated payments on behalf of users. Cloudflare outlined several potential applications, such as an AI agent using the stablecoin to purchase the cheapest available flight or to place an order for an item when it goes on sale. Other use cases include paying a supplier immediately upon confirmation of a delivery and compensating creators for their content. The company stated that this functionality will help make digital payments more efficient as AI tools become more integrated into daily life.
However, the initiative faces a legal hurdle. The new stablecoin law prohibits public companies that are not financial firms from issuing stablecoins without securing government approval. This requirement makes Cloudflare’s plan notable, as the company will need to obtain regulatory clearance before it can proceed with the launch. Consequently, Cloudflare has not yet released complete details about the project. The company has indicated that more information regarding the NET Dollar will be made available soon.
Turning to Wall Street analysis of Cloudflare’s stock (NET), analysts have assigned a Moderate Buy consensus rating. This consensus is based on ratings from the past three months, which include 15 buys, nine holds, and two sells. The average price target for NET shares is $219.71, a figure which suggests that the stock is currently trading near what analysts consider to be its fair value.
