PayPal suspends development of its stablecoin after NYDFS investigation against Paxos

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PayPal suspended until further notice the development of its stablecoin.

A report published by Bloomberg news agency indicated that digital payments operator PayPal has opted to suspend development of its own stablecoin because of regulatory concerns facing the digital currency industry.

Regarding the development of this stablecoin, the Paxos team was listed as a strategic partner of this initiative promoted by PayPal. Let's keep in mind that the company is recognized as one of the main issuers of this type of assets, which operates in compliance with US laws, being responsible for projects such as Pax Dollar and Binance USD among the best known ones.

Reports provided by some sources with knowledge of the case indicated that PayPal's stablecoin was quite advanced, and that the company was already planning its official launch in the coming weeks. However, the investigation against Paxos set off alarm bells, so they suspended work until further notice.

In this regard, PayPal spokeswoman Amanda Miller released a statement where she said that the company is exploring the issuance of a stablecoin, but that they will work closely with the relevant regulators, this to better understand the regulatory landscape and adjust to the changes that apply.

PayPal and cryptocurrencies
Reports of these new PayPal actions come on the heels of the release of data from its annual report filed with the U.S. Securities and Exchange Commission (SEC), where the company disclosed handling an estimated USD $604 million in crypto funds from its customers.

The breakdown of the data reveals that PayPal had USD $291 million in Bitcoin and USD $250 million in Ether, which together equate to 90% of users' funds, these being the most managed cryptocurrencies. The remaining USD $63 million is made up of Litecoin and Bitcoin Cash in an unspecified proportion.

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