PayPal delays stablecoin work as key partner under NYDFS probe

PayPal Holdings ( NASDAQ: PYPL ) has put its stablecoin work on hold as New York regulators were said to have investigated its key partner in the project earlier this week, Bloomberg reported Friday, citing a person familiar with the matter. The payments giants' crypto partner, Paxos, issues stablecoins pax dollar ( USDP-USD ) and binance USD ( BUSD-USD ). A stablecoin is a digital token whose value is pegged to a reference asset, typically fiat currencies (think U.S. dollar) or commodities (think gold). San Jose, California-based PayPal ( PYPL ) in January 2022 had started exploring the launch of its own dollar-pegged stablecoin as part of its push into the cryptocurrency space. The debut of PayPal's ( PYPL ) stablecoin was initially slated for the coming weeks, the person told Bloomberg . Neither PayPal nor Paxos immediately responded to Seeking Alpha's request for comment. Towards the end of 2022, PayPal ( PYPL ), which started offering its crypto-related services in October 2020, was said to integrate its crypto services with MetaMask wallet for ethereum ( ETH-USD ) transactions.