PayPal has received a subpoena from the Securities and Exchange Commission (SEC) requesting documentation about its recently launched stablecoin.
In its quarterly earnings report, PayPal says: “On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin.
“The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request.”
The filing does not provide any details on the SEC’s request.
PayPal USD (PYUSD) launched in August, succeeding where Facebook’s protracted Libra project failed in the ace of huge regulatory pushback.
The stablecoin is issued by Paxos and fully backed by US dollar deposits, short-term US treasuries and similar cash equivalents.
Customers who purchase PYUSD can transfer the token to external wallets, send P2P payments, fund purchases at checkouts supported by PayPal, and convert cryptocurrency holdings to and from the stablecoin.
