According to PayPal’s quarterly report published today, the payments firm received a subpoena from the SEC Division of Enforcement yesterday regarding the PayPal USD stablecoin.
“The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request,” PayPal says in the filing.
In August PayPal announced that its crypto partner Paxos Trust would issue a PayPal USD (PYUSD) stablecoin. So far the market capitalization is $158 million. At the time our analysis showed that the Tether stablecoin reserves were double the monies held by PayPal on behalf of customers. Given that reserves now earn significant interest, the attraction of a stablecoin for PayPal is clear.
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