PayPal suspends development of its stablecoin

PayPal has suspended the development of its own stablecoin, according to Bloomberg.. The decision was influenced by an investigation by US regulators into Paxos.

Earlier it was reported that the New York State Department of Financial Services (NYDFS) launched an investigation into Paxos Trust, the issuer of Pax (USDP) and Binance (BUSD) stablecoins.. It is not yet known what exactly became the subject of attention of the regulator, but PayPal worked with this company to create its stablecoin.

PayPal's stablecoin was expected to arrive in the coming months. The stablecoin was supposed to be pegged to the US dollar.

“We are still exploring the possibilities of stablecoins. If and when we decide to proceed with our project, we will certainly work closely with all regulators,” PayPal spokeswoman Amanda Miller said in a letter to Bloomberg.

PayPal recently reported that its customers' accounts have seen a significant drop in digital assets.. The amount decreased by 13% compared to September last year and amounted to $604 million.