PayPal has hit pause on efforts to develop its own stablecoin, according to a Bloomberg report Friday.
The online payment provider reportedly halted its plans due to increased scrutiny of cryptocurrencies by regulators. This includes an investigation by the New York Department of Financial Services into Paxos Trust Company, a stablecoin issuer and partner of PayPal.
PayPal says it's "exploring" a stablecoin. "If and when we seek to move forward, we will of course, work closely with relevant regulators," said a spokesperson on Friday.
Last August, PayPal and Paxos said they were working on developing crypto products. The two have been partners in bringing cryptocurrency to PayPal since 2020.
Stablecoins are different than cryptocurrencies such as bitcoin or ether. Instead of being "mined" like other crypto, stablecoins are tied to assets such as the US dollar. Though these coins are considered to be less risky than other cryptocurrencies, 2022 saw stablecoins showing signs of weakness, leading to a decline in the crypto market.