PayPal reportedly halts work on stablecoin offering
Payments titan PayPal has reportedly paused work on its forthcoming stablecoin offering amid increasing regulatory scrutiny of the cryptocurrency sector.
PayPal reportedly puts stablecoin work on hold
Work on PayPal’s stablecoin, which it hoped to launch in the coming weeks, has been delayed as the firm looks to get a clearer understanding of the changing regulatory landscape around digital assets, Bloomberg reports.
PayPal spokesperson Amanda Miller confirmed the firm is “exploring a stablecoin”.
“If and when we seek to move forward, we will, of course, work closely with relevant regulators,” she adds.
The pause follows reports that New York State Department of Financial Services (DFS) regulators are investigating Paxos Trust, a cryptocurrency firm PayPal was working with on its stablecoin effort, Bloomberg notes.
New York-based Paxos, which issues a token that ranks as the third-largest stablecoin, is regulated by the state’s DFS.
“The department is in continuous contact with regulated entities to understand vulnerabilities and risks to consumers and the institutions themselves from crypto market volatility we are experiencing,” a DFS spokesperson told Bloomberg.
