What happened?
Payment giant PayPal has received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin, according to a report by Reuters. The SEC's Enforcement division sent the subpoena to PayPal in relation to its PayPal USD (PYUSD) stablecoin.
Background
PayPal launched its PYUSD stablecoin in August of this year. The stablecoin, issued by Paxos Trust, is backed by U.S. dollar deposits, short-term Treasurys, and similar cash equivalents. It operates on the Ethereum blockchain and is designed for digital payments and Web3 applications.
No comment from PayPal or Paxos
Neither PayPal nor Paxos have responded to Cointelegraph's request for comment on the SEC subpoena.
What's next?
This is a developing story, and more information will be shared as it becomes available.
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