Connect with us

Hi, what are you looking for?

Business

PayPal is subpoenaed by the SEC regarding its $PYUSD stablecoin

Since the debut of its stablecoin in August, PayPal has been the industry leader in using digital currencies for payments and transfers.

Once more, PayPal Holdings, a major participant in the payment industry, has been subject to regulatory scrutiny. Regarding its U.S. dollar stablecoin, this time. The organization, which garnered considerable interest as the initial prominent fintech company to adopt digital currencies, was formally served with a subpoena by the Securities and Exchange Commission (SEC) of the United States.

On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request.

PayPal revealed in its quarterly earnings report filed Wednesday

The initial stablecoin developed by a significant financial services firm was PayPal’s. The declaration incited apprehension in Washington due to its resemblance to the Libra stablecoin, an earlier endeavor by Facebook (now Meta Platforms) that failed to materialize. Certain U.S. regulators are concerned that a token associated with a significant technology platform could rapidly gain widespread adoption and pose a risk to the financial stability of the country.

Approximately three months after PayPal introduced its PYUSD stablecoin in early August, this event transpired. Paxos Trust issues the stablecoin, which is supported by cash equivalents such as U.S. dollar deposits and short-term Treasury bills. The Ethereum blockchain underpins PYUSD, which is designed to facilitate digital payments and Web3.

The stablecoin was swiftly listed on platforms of major exchanges including Coinbase, Crypto.com, Bitstamp, and Kraken shortly after its inception, which contributed to the steep increase in PayPal USD adoption. PayPal declared its intention to incorporate the PYUSD stablecoin into the Venmo mobile payment platform in September. This integration would enable users to acquire PYUSD and subsequently transfer it to their loved ones.

Advertisement

You May Also Like

By 360

Thousands of MILLIONAIRES are made every single cycle! Will you be one of them?

By 360

Elon Musk’s announcement which resulted in MASS FOMO retail driven buying was an X FACTOR of this cycle.

Business

The central banks would design and define the monetary and governance rules for their digital currency by using Consensys' Quorum platform

By 360

I LOVE HUMOR and of course this includes hearty doses of SARCASM sprinkled with harmless SATIRE from time to time.

Subscribe to our Free Trade of the Month Newsletter
Submit your name and email and receive access to 360 Elite Trifecta Trading Alerts free for one month worth $129!
Get a free trading signal every month!
Subscribe to our Free Trade of the Month Newsletter
Submit your name and email and receive access to 360 Elite Trifecta Trading Alerts free for one month worth $129!
Get a free trading signal every month!
polkadot
Polkadot (DOT) $ 8.12 6.09%
bitcoin
Bitcoin (BTC) $ 56,555.15 10.73%
ethereum
Ethereum (ETH) $ 3,252.20 6.45%
cardano
Cardano (ADA) $ 0.620622 7.56%
xrp
XRP (XRP) $ 0.560325 4.79%
stellar
Stellar (XLM) $ 0.120285 4.93%
litecoin
Litecoin (LTC) $ 75.59 8.66%