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The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into PayPal’s U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), without pursuing any enforcement action. According to a regulatory filing by PayPal on April 29, 2025, the SEC notified the company in February that it was closing the inquiry.
PayPal had received a subpoena from the SEC’s Division of Enforcement in November 2023, requesting documents related to PYUSD. The stablecoin, launched in August 2023 and issued by Paxos Trust Company, is fully backed by U.S. dollar deposits, short-term treasuries, and cash equivalents, and operates on the Ethereum blockchain.
Despite entering a market dominated by established players like Tether and Circle, PYUSD has experienced growth, with a 75% increase in circulating supply since the beginning of 2025. As of April 2025, its market capitalization stands at approximately $880 million, though it remains below its peak of over $1 billion in August 2024.
To further promote PYUSD adoption, PayPal announced a partnership with Coinbase on April 24, 2025, aiming to enhance the stablecoin’s utility. Additionally, PayPal introduced a new loyalty program offering U.S. users a 3.7% annual yield for holding PYUSD on the platform.
In its first-quarter earnings report, PayPal reported earnings of $1.33 per share, surpassing analyst expectations of $1.16, with revenue rising 1% year-over-year to $7.8 billion.
