In brief: PayPal halts work on its stablecoin

Payments company PayPal has decided to halt work on its stablecoin as US regulators step up their scrutiny of crypto-currencies and a key partner in the project, Paxos Trust Co, is under investigation by the New York State Department of Financial Services.

Paxos was forced to stop issuing BUSD as of 21 February.

The stablecoin project was announced last year. The token was to be backed by the US dollar.

The stablecoin was to be launched in the coming weeks.

Furthermore, a PayPal spokesperson explained: "We are looking into the possibility of a stablecoin; if and when we look to move forward, we will of course work closely with the relevant regulators. So, if the PayPal token project were to resume, the US giant would take care to work with the regulators.