SEC drops investigation into PayPal’s stablecoin
The US Securities and Exchange Commission has concluded its investigation into PayPal's US-dollar stablecoin, PayPal USD (PYUSD), without taking any enforcement action. PayPal received a subpoena from the SEC in November 2023, requesting document production, and cooperated with the inquiry. PYUSD is fully redeemable for US dollars and backed by dollar deposits, but it has a market capitalization of $880 million, significantly lower than Tether's $148.5 billion. PYUSD's circulating supply increased by 75% since the start of 2025, though it remains down 14% from its peak in August 2024. PayPal introduced a loyalty program offering a 3.7% annual yield for holding PYUSD and announced a partnership with Coinbase to enhance adoption. In the first quarter, PayPal reported earnings of $1.33 per share, exceeding expectations, with revenue rising to $7.8 billion.
