The New York State Department of Financial Services (NYDFS) has just awarded PayPal Digital a limited purpose trust charter. This is the same trust charter typically held by digital asset custodians and some stablecoin issuers.
Last August PayPal launched its PYUSD stablecoin, the first from a BigTech. Technically, the stablecoin issuer is Paxos Trust Company which also has an NYDFS limited trust charter. Paxos has also been PayPal’s partner for its cryptocurrency offering since its launch. Hence, there’s a possibility that the aim of the Trust charter is to take on the custody of PayPal client crypto-assets and move the issuance of the stablecoin in-house.
We contacted PayPal to verify the purpose but didn’t receive a response before publication.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
