Payments giant PayPal is suspending its stablecoin project after its lead partner Paxos, issuer of the stablecoins Pax dollar and Binance USD, is facing an investigation by the New York State Department of Financial Services.
PayPal had hoped to launch a stablecoin backed one-for-one by the U.S. dollar in the coming weeks, but the effort has been delayed due to the changing regulatory environment for cryptocurrencies, according to people familiar with the matter.
“We are exploring a stablecoin and we will of course work closely with relevant regulators if we seek to move forward,” PayPal spokeswoman Amanda Miller said in an emailed statement.