Cybersecurity firm Cloudflare (NET) is planning to launch its own stablecoin called NET Dollar. Indeed, this digital coin will be tied to the U.S. dollar and will be backed by reserves in order to keep its value steady. It is worth noting that this would be the first stablecoin from a major tech company since new U.S. legislation on stablecoins was passed in July.
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Interestingly, the NET Dollar is designed to allow AI systems to make fast and automatic payments on behalf of individuals. For example, an AI could use it to buy the cheapest available flight, place an order when an item goes on sale, or pay a supplier as soon as a delivery is confirmed. It can also be used to pay creators for their content. Cloudflare says this will make digital payments smoother and more efficient, especially as AI tools become more common in everyday life.
However, there is a legal hurdle: the new stablecoin law bans public companies that aren’t financial firms from issuing stablecoins unless they get government approval. That makes Cloudflare’s announcement especially interesting, since it will need approval before launching. As a result, the company hasn’t shared all the details yet, but says more information about NET Dollar will be coming soon.
Is NET Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NET stock based on 15 Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NET price target of $219.71 per share implies that shares are trading near fair value.
