Stablecoin Development at PayPal Reportedly Halted

PayPal, the world's leading payments company, has been reported to have paused work on its upcoming stablecoin offering due to increased regulatory scrutiny, which has been focused on the cryptocurrency industry.

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PayPal has postponed the launch of its stablecoin, which it had hoped to launch within the next few weeks, in order to get a better understanding of the changing regulatory landscape around digital assets, according to Trade Algo, which has become more complicated as time goes on.

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Amanda Miller, a PayPal spokeswoman, confirmed that the company is in the process of “exploring the possibility of a stablecoin ”.

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“We will, of course, work closely with relevant regulators if and when we decide to move forward,” she further stated.

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The pause came following reports that the New York State Department of Financial Services (DFS) regulators are investigating Paxos Trust, a cryptocurrency firm PayPal was working with to develop its stablecoin project, Trade Algo reports.

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Paxos, which is based in New York City, issues a token that ranks as the third-largest stablecoin and is governed by the state's Department of Financial Services.

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“A DFS spokesperson told Trade Algo that they are in continuous contact with institutions regulated by the Department of Financial Services to better understand the vulnerabilities and risks that are being experienced by consumers and institutions alike from the crypto market volatility that we are experiencing.