Key Insights
- The U.S. SEC has issued a subpoena to PayPal, focusing on its U.S. dollar-pegged stablecoin, PYUSD.
- PayPal launched the PYUSD stablecoin in August, backed by U.S. dollar deposits and short-term Treasuries, and built on the Ethereum blockchain.
Payment giant PayPal is facing scrutiny from the United States Securities and Exchange Commission (SEC) concerning its U.S. dollar-pegged stablecoin, PYUSD.
The SEC’s Enforcement division served PayPal with a subpoena related to its recently introduced PYUSD stablecoin, according to a report by Reuters.
PayPal launched the PYUSD stablecoin in early August, and it is issued by Paxos Trust. This stablecoin is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents. Built on the Ethereum blockchain, PYUSD is designed for facilitating digital payments and Web3 applications.
As of now, neither PayPal nor Paxos has provided an official response to this development. The SEC’s interest in PYUSD indicates increasing regulatory scrutiny of stablecoins in the evolving cryptocurrency landscape.