PayPal Pauses Stablecoin Work Amid Regulatory Scrutiny of Crypto
- Partner Paxos under investigation by NY financial regulators
- PayPal has been exploring a stablecoin amid crypto push
Photographer: David Paul Morris/Bloomberg
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PayPal Holdings Inc. is pausing work on its stablecoin as regulators increase scrutiny of cryptocurrencies and a key partner in the project faces a probe by the New York State Department of Financial Services.
PayPal had hoped to debut the stablecoin, which will be backed one for one by the US dollar, in the coming weeks, but will delay that work as it seeks to understand the changing regulatory landscape for such digital assets, according to a person with knowledge of the matter. New York regulators have been investigating Paxos Trust Co., a cryptocurrency firm PayPal was working with on its stablecoin effort, Bloomberg News reported this week.