PayPal faces SEC action related to PYUSD stablecoin: Official
PayPal was the first large fintech firm to adopt digital currencies for payments and transfers after launching its stablecoin in August.
The Enforcement division of the SEC has sent a subpoena to PayPal related to its PayPal USDÂ
PYUSD
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$1.00
 stablecoin, the firm officially disclosed on Nov. 2 in its Q3 financial report with the SEC.
Received by PayPal on Nov. 1, the subpoena requested PayPal to produce certain documents, the firm said. âWe are cooperating with the SEC regarding this request,â PayPal noted.
The action comes about three months after PayPal launched its PYUSD stablecoin in early August. The stablecoin is issued by Paxos Trust and backed by U.S. dollar deposits, short-term Treasurys and similar cash equivalents. PYUSD is based on the Ethereum blockchain and is aimed at handling digital payments and Web3
According to a spokesperson for Paxos, PYUSD has seen a successful rollout so far, reaching a $150 million market capitalization in the two months since its launch. At the time of writing, the market cap of PYUSD is valued at about $159 million, with almost $2.7 million in daily trading volume, according to data from CoinGecko.
PayPal USD (PYUSD) stablecoin info. Source: CoinGecko
PayPal did not immediately respond to Cointelegraphâs request for comment.
The sharp rise in the adoption of PayPal USD came amid major exchanges like Coinbase, Crypto.com, Bitstamp and Kraken listing the stablecoin on their platforms soon after its launch. In September, PayPal announced the upcoming integration of the PYUSD stablecoin into the Venmo mobile payment service, allowing users to purchase PYUSD and send it to friends and family.
Apart from aggressively moving into crypto in the United States, PayPal has also been progressing with crypto initiatives in other countries. On Oct. 31, PayPal received a license from the United Kingdom Financial Conduct Authority to offer crypto services in the country.
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