PayPal suspends stablecoin launch after Paxos investigation

Payment processing company PayPal unexpectedly halted its project to build its own stablecoin following the latest legal actions from the US.

PayPal suspends stablecoin plans after Paxos investigation

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.

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.

Synthetic Kyptos

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img