According to a source familiar with the situation cited by Bloomberg News on Friday (Feb. 10), the payments business had planned to launch the stablecoin in the coming weeks.
According to Bloomberg, the suspension occurred at the same time as the New York State Department of Financial Services said that Paxos Trust, PayPal’s partner on the stablecoin project, was under investigation (NYDFS).
Two days after Paxos used Twitter to address “speculation” on its connection to the US Office of the Comptroller of the Currency, according to PYMNTS, news of the inquiry broke (OCC).
To dispel rumors, the company stated that neither Paxos nor the OCC had requested that it drop its request for a national trust bank charter.
The Securities and Exchange Commission’s (SEC) $30 million settlement with the American cryptocurrency exchange Kraken over its staking product, which many observers believe to be the most significant recent event in the crypto market, should be added to all of this.
Cryptocurrency intermediaries are obligated to offer the necessary disclosures and precautions needed by our laws, whether they do so through loan, staking-as-a-service, or other channels. Gary Gensler, the SEC chairman, said.
Major cryptocurrency exchanges like Coinbase and Binance have started to sell crypto-staking goods, as PYMNTS pointed out, in an effort to diversify their revenue streams. The settlement caused Coinbase, the second-largest depositor of staked ether, to have its shares fall by the highest in over half a year.