PYUSD saw a 75% rise in supply this year, with new rewards and a Coinbase deal pushing adoption.
The US Securities and Exchange Commission has dropped its investigation into PayPal’s dollar-backed stablecoin, PYUSD, without taking enforcement action.
PayPal confirmed in a 29 April filing that the SEC notified the firm in February that the inquiry had been closed. The regulator first issued a subpoena in November 2023, requesting documents related to the stablecoin.
PYUSD is said to be fully backed and redeemable in US dollars. Despite that, it has struggled to gain market share, with a market cap of just $880 million, far below competitors like Tether and Circle.
The stablecoin’s circulating supply has increased by 75% in 2025, helped by new incentives. US users can now earn 3.7% annually by holding PYUSD, and a new partnership with Coinbase aims to boost adoption further.
PayPal also posted strong first-quarter results, beating expectations with $1.33 earnings per share and $7.8 billion in revenue. It highlighted major share buybacks and plans for stablecoin innovation.
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