A spokesperson for PayPal confirmed to Reuters that the company had received a subpoena tied to its U.S. dollar stablecoin.
Payments giant PayPal received an investigative subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its stablecoin tied to the U.S. dollar, the company revealed in its latest 10-Q report.
While the details behind the move remain unclear, the firm said the subpoena “requests the production of documents.” PayPal added it is cooperating with the SEC “in connection with this request.”
In a commentary to Reuters, a spokesperson for PayPal confirmed the request but did not elaborate on the matter.
PayPal launched its stablecoin dubbed PYUSD on Aug. 7, 2023, in collaboration with crypto infrastructure firm Paxos. The stablecoin is backed by U.S. dollar deposits, short-term U.S. Treasuries, and other cash equivalents that help ensure its stability.
Almost a month later, on Sept. 11, PayPal added a feature that allowed users to convert digital currencies into U.S. fiat.
The stablecoin is being issued by Paxos Trust Company on the Ethereum (ETH) blockchain as an ERC-20 token designed to align with crypto wallets and web3 applications.