The U.S. SEC recently issued a subpoena to PayPal concerning its PYUSD stablecoin, which is pegged to the U.S. dollar.
In their Q3 financial report submitted to the SEC on November 2, PayPal disclosed the receipt of the subpoena from the SEC’s Enforcement division, specifically regarding the PYUSD stablecoin.
According to PayPal, this subpoena was delivered on November 1, requesting specific record production. The payment company has been cooperative in responding to this inquiry from the SEC.
Around three months prior, PayPal launched its PYUSD stablecoin in early August 2023. This stablecoin is backed by Paxos Trust and is supported by deposits in U.S. dollars, short-term Treasury bonds, and other cash equivalents.
Running on the Ethereum blockchain, PYUSD is designed to facilitate Web3 interactions and digital payments.
A spokesperson for Paxos has reported a positive reception for PYUSD since its release two months ago, with a market valuation of $150 million.
Following its introduction, PYUSD gained quick acceptance, with major crypto exchanges adopting the stablecoin.
In addition, PayPal also revealed plans for its Venmo mobile payment service to support the PYUSD stablecoin, enabling users to purchase PYUSD and transfer it to friends and family.
PayPal has been making significant strides in its global cryptocurrency initiatives, including obtaining a crypto service license from the UK’s Financial Conduct Authority (FCA) on October 31.