Cybersecurity firm Cloudflare has announced plans to launch its own stablecoin, NET Dollar, a digital currency pegged to the U.S. dollar and backed by reserves to maintain a stable value.
The NET Dollar is designed to enable artificial intelligence systems to execute fast and automated payments on behalf of users. Cloudflare outlined 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. 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. Cloudflare will need to obtain regulatory clearance before it can proceed with the launch. Consequently, the company has not yet released complete details about the project, but has indicated that more information regarding the NET Dollar will be made available soon.
On Wall Street, analysts have assigned a Moderate Buy consensus rating to Cloudflare’s stock (NET) 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, suggesting that the stock is currently trading near its fair value.
