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Sandeep Kumar Mishra
Feb 11, 2023
by Sandeep Kumar Mishra

PayPal Halts Work on Stablecoin Amid Heightened Regulatory Concerns

PayPal Stablecoin

Table of contents

  1. PayPal Stablecoin Project Paused Due to Paxos Probe
    1. Paypal's Stablecoin Project

PayPal has halted work on its stablecoin amid increased scrutiny of cryptocurrencies by regulators and probe faced by a key partner in the project by the New York State Department of Financial Services.

PayPal Stablecoin Project Paused Due to Paxos Probe

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. New York regulators have been investigating Paxos Trust Co., a cryptocurrency firm PayPal was working with on its stablecoin effort.

New York-based Paxos, the issuer of a Binance-branded token that ranks as the third-largest stablecoin, is regulated by the state’s Department of Financial Services. On its website, Paxos stresses its commitment to consumer protection and says that reserves for both of the stablecoins it issues are held wholly in cash and US Treasuries. The company also issues its own stablecoin called Pax Dollar.

Paypal's Stablecoin Project

PayPal announced last year that the Department of Financial Services had granted the firm a “BitLicense,” which governs businesses working with virtual currencies. PayPal said at that time that it was the first company to convert a conditional BitLicense into a full one.

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PayPal Halts Work on Stablecoin Amid Heightened Regulatory Concerns
Sandeep Kumar Mishra
Sandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He has a strong mix of skills in the areas of computer networking, cryptography, algorithms, and data structures and specializes in ERC20 tokens. Lately, he is taking a lot of interest in blockchain-powered AI solutions, about which he is also reading and writing extensively. He has to his name dozens of deeply researched articles about cryptocurrencies, blockchain, AI, and IoT. Apart from that, he loves to keep track of the latest trends in social media and digital marketing space. Also, as a huge proponent of blockchain and cryptocurrencies, Sandeep tries to deliver all the latest cryptocurrency news to ardent crypto supporters like yourselves. If you like his content, feel free to follow him on LinkedIn.

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