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PayPal pauses development of its own stablecoin

The announcement follows SEC investigations into project partner Paxos and its stablecoin BUSD.

By Mike Hesp
• 1 min read
PayPal pauses development of its own stablecoin

The announcement comes after SEC investigations into the project partner Paxos and its stablecoin BUSD.

As Bloomberg reports, the payments provider PayPal is halting development of its own stablecoin. The reason for this is the recent stricter stance from regulators, according to the report.

For developing the dollar token, PayPal partnered with Paxos, the operator of Binance's stablecoin BUSD. Paxos itself has, however, come under the SEC scrutiny after the crackdown on crypto exchange Kraken.

According to reports, PayPal originally planned to launch its own stablecoin "in the coming weeks." Citing an anonymous source, this has been postponed until the "changing regulatory landscape" is clarified.

In a statement provided to Bloomberg, a PayPal spokesperson said the company would work closely with regulators if and when it proceeds with the project.

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