Payment processing company PayPal unexpectedly halted its project to build its own stablecoin following the latest legal actions from the US.
According to Bloombergpayment giant PayPal has decided to suspend its plans to launch a stablecoin in the face of increased regulatory pressure in the US.
PayPal is pausing work on its stablecoin as regulators increase scrutiny of cryptocurrencies and a key partner in the project faces a probe in New York https://t.co/S9wF7mbjUl
— Bloomberg Crypto (@crypto) February 10, 2023
This news comes just a day after Paxos, a well-known US stablecoin issuer and the one behind Binance’s BUSD coin, was reported to be under investigation by the New York Financial Services Authority (NYDFS). investigation for undisclosed reasons.
Paxos is also a joint development partner of PayPal’s stablecoin project, which was originally scheduled to launch in the next few weeks. Leaked information about this stablecoin shows that it will be backed by USD, pegged to the US dollar as well.
A PayPal representative said:
“We are still exploring stablecoins. If we decide to go ahead with this plan, we will of course work closely with the regulatory authorities.”
Earlier, on the evening of February 10, PayPal said in its Q4/2022 financial report that the company is holding $ 604 million in customer crypto, mainly in the form of BTC and ETH.
This is the amount of money held by PayPal users in the account of the US payment giant after the company supports buying, selling and paying in BTC, ETH, BCH and LTC since the end of 2020.