“`html
PayPal indicates that the US Securities and Exchange Commission has discontinued its inquiry into the payment behemoth’s US-dollar stablecoin.
In a regulatory filing dated April 29, PayPal confirmed that the SEC had wrapped up its investigation into PayPal USD (PYUSD) and would not pursue any action.
The organization reported receiving a subpoena from the SEC’s Division of Enforcement regarding its stablecoin back in November 2023.
“The subpoena demands the provision of documents. We are fully cooperating with the SEC in relation to this request,” PayPal remarked at that time.
In its most recent filing, the company stated that the SEC informed it in February that the agency “was concluding this inquiry without enforcement measures.”
PayPal maintains that its stablecoin is entirely redeemable for US dollars and “completely supported” by dollar deposits, which include short-term treasury instruments and cash equivalents.
Nonetheless, the stablecoin has faced challenges in gaining traction within a saturated market led by competitors Tether and Circle. PYUSD’s market capitalization stands at a mere $880 million, which is less than 1% of Tether’s (USDT) $148.5 billion.
This year, however, PayPal’s stablecoin has experienced improved growth, showing a 75% rise in PYUSD circulating supply since the start of 2025, according to CoinGecko. It is still down 14% from its peak supply of just above $1 billion in August 2024.
Earnings on PYUSD, Coinbase collaboration
This growth may be further enhanced by a company announcement made on April 23 introducing rewards for PYUSD within a new loyalty program, allowing US users to earn 3.7% annually for holding the asset on the platform.
Additionally, on April 24, PayPal declared a partnership with Coinbase aimed at expanding the penetration of PYUSD.
“We are eager to foster innovative and stimulating use cases together with Coinbase and the broader cryptocurrency community, positioning PYUSD at the forefront,” stated Alex Chriss, PayPal President and CEO.
Related: PayPal to provide 3.7% yield on stablecoin holdings: Report
The payments giant also announced strong earnings for the first quarter along with the completion of significant stock repurchase initiatives.
The firm surpassed Wall Street projections, reporting earnings of $1.33 per share for the first quarter, exceeding analyst expectations of $1.16. Revenue increased by 1% compared to the previous year, totaling $7.8 billion.
Magazine: Bitcoin $100K hopes on hold, SBF’s puzzling prison move: Hodler’s Digest
Source link
“`
