Bloomberg reports PayPal’s pause in developing a stablecoin

The payments giant PayPal has frozen the development of its own stablecoin amid news of the NYDFS‘s investigation into Paxos, the issuer of BUSD and USDP. Bloomberg.

Paxos became PayPal’s partner in issuing the stablecoin. It was expected that the token’s debut would occur ‘in the coming weeks’.

At the moment the payments giant is seeking to understand the evolving regulatory landscape for such assets, according to people familiar with the matter.

We are studying the ‘stablecoin’. If and when we move forward, we will, of course, work closely with regulators, said Amanda Miller, the company’s spokesperson.

Rumours about the company’s plans surfaced in May 2021. At that time, one of the informed sources said that PayPal was more likely to select a partner already represented in the stablecoin sector.

As Bloomberg reported on the NYDFS investigation into Paxos’s activities.

On February 13 The Wall Street Journal, citing its own sources, wrote about plans for the SEC to sue the company over its involvement in the issuance of BUSD. The Commission deemed the stablecoin a security.