SEC subpoenas PayPal over its USD-pegged stablecoin

Just three months after PayPal entered the fray to bring stablecoins to the masses, it’s attracting attention from U.S. regulators.

The payments giant said Thursday that it had received a subpoena from the Securities and Exchange Commission related to its U.S. dollar-pegged stablecoin, according to Reuters. TechCrunch has reached out to PayPal for comment.

In early August, PayPal launched PYUSD, a stablecoin issued by Paxos Trust Company and backed by U.S. dollar deposits. At the time, the firm said the digital currency solution would be “gradually” rolling out to users in the U.S. In September, PayPal made the stablecoin available on Venmo.

PayPal joins a growing list of tech companies targeted by U.S. authorities over their interaction with digital currencies. While most of the players under regulatory scrutiny are crypto-native, PayPal marked the first major U.S. financial institution to launch stablecoins for payments and transfers.

This is a developing story…