PayPal Holdings, the financial giant that made headlines by adopting digital currencies for payments and transfers, is now facing a new development.
The company revealed that it has received a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its PYUSD stablecoin.
This revelation came to light on November 2, when PayPal acknowledged receiving a subpoena from the U.S. SEC in its quarterly earnings report.
“On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin,” the Thursday report stated.
Although the specifics of the situation are not fully known, the company disclosed that the summon requires them to provide certain documents. PayPal has also stated it is fully collaborating with the SEC in response to this demand.
PayPal made headlines in August when it launched its PYUSD stablecoin, becoming the first major fintech company to embrace digital currencies for payments and transfers. The stablecoin is issued by Paxos Trust and is backed by a reserve of U.S. dollar deposits, short-term Treasury certificates, and similar cash assets.
Since its launch, PYUSD has seen impressive growth, with its market capitalization reaching $150 million within just two months. As of the latest data from CoinGecko, the market capitalization of PYUSD now stands at approximately $159 million, with a daily trading volume of nearly $2.7 million.
The rapid adoption of PayPal’s stablecoin can be attributed to its listing on major cryptocurrency exchanges such as Coinbase, Crypto.com, Bitstamp, and Kraken. These listings have provided users with increased accessibility to PYUSD, further fueling its popularity in the crypto market.
In an effort to expand its reach, PayPal announced in September its plans to integrate the PYUSD stablecoin into its Venmo mobile payment service. This integration will enable Venmo users to purchase PYUSD and easily send it to friends and family, further integrating cryptocurrencies into everyday financial transactions.
In addition to its venture into the crypto space in the United States, PayPal has been making strides with crypto initiatives in other countries as well. On October 31, PayPal received a license from the United Kingdom Financial Conduct Authority to offer crypto services in the UK.
