Author: Martin Young, CoinTelegraph; Translated by: Deng Tong, Golden Finance
PayPal stated that the U.S. Securities and Exchange Commission (SEC) has abandoned its investigation into its dollar stablecoin.
PayPal stated in regulatory filings submitted on April 29 that the SEC has ended its investigation into PayPal USD (PYUSD) and will take no action.
The company stated that it received a subpoena from the SEC's enforcement division regarding its stablecoin in November 2023.
PayPal stated at the time, 'The subpoena requests relevant documents. We are cooperating with the SEC's investigation.'
The company stated in its latest filings that the SEC notified it in February that it 'will conclude the investigation without taking enforcement action.'
PayPal stated that its stablecoin is 100% redeemable for US dollars and is 'fully backed by' dollar deposits, including short-term government bonds and cash equivalents.
However, in a crowded market dominated by competitors Tether and Circle, this stablecoin has struggled to gain traction. The market capitalization of PYUSD is only $880 million, less than 1% of Tether's $148.5 billion.
PayPal dollar market capitalization. Source: CoinGecko
Benefits from the partnership between PYUSD and Coinbase
On April 23, PayPal announced the launch of a new loyalty program that offers rewards for PYUSD, allowing U.S. users holding the asset on the PayPal platform to earn 3.7% annually, which could further drive the growth of PYUSD.
Meanwhile, on April 24, PayPal announced a partnership with Coinbase to expand the adoption of PYUSD.
PayPal President and CEO Alex Chriss stated, 'We are excited to work with Coinbase and the entire cryptocurrency community to drive new, exciting, and innovative use cases, placing PYUSD at the core.'
The payments giant also reported strong first-quarter performance and completed significant stock buyback activities.
The company reported earnings per share of $1.33 for the first quarter, exceeding Wall Street expectations and higher than the analyst expectation of $1.16. Revenue grew 1% year-over-year to $7.8 billion.