PayPal, a pioneer in digital currency adoption, faces a subpoena from the SEC regarding its PYUSD stablecoin. Learn about the latest developments and the growth of PYUSD.
PayPal Holdings, a financial giant at the forefront of digital currency adoption, has received a subpoena from the U.S. Securities and Exchange Commission (SEC) concerning its PYUSD stablecoin. This development was disclosed in PayPal’s quarterly earnings report on November 2, 2023. While the details of the situation remain undisclosed, the SEC’s demand for specific documents is clear. PayPal has affirmed its cooperation with the SEC in response to this inquiry.
PYUSD, PayPal’s stablecoin, made headlines when it was launched in August, marking a major step in fintech’s embrace of digital currencies. The stablecoin, backed by a reserve of U.S. dollar deposits and other cash assets, has experienced remarkable growth. With a market capitalization of approximately $159 million and substantial daily trading volume, its presence in the crypto market is undeniable.
Notably, PayPal’s strategic listings on prominent cryptocurrency exchanges, including Coinbase, Crypto.com, Bitstamp, and Kraken, have significantly enhanced PYUSD’s accessibility and popularity. Moreover, PayPal’s plans to integrate PYUSD into its Venmo mobile payment service signal further advancement in the adoption of cryptocurrencies for everyday financial transactions. PayPal’s global crypto initiatives are also evident, as it recently obtained a license from the UK Financial Conduct Authority to offer crypto services in the United Kingdom.
