Paypal Holdings Inc. has put its stablecoin project on hold and it cited the changes in the regulatory aspect as the reason for the decision. The fintech firm paused all the work on the upcoming stablecoin last week.

As per CryptoSlate, PayPal may have not officially announced about its stablecoin project which has been dubbed as “PayPal Coin” but this was uncovered in its own application code more than a year ago. This code that gave away the project was said to have been first shared with Bloomberg News which subsequently published a report about it in January of last year.

The news outlet stated that PayPal has been looking forward to launching the stablecoin in the coming weeks, with no exact timeline given. However, it appears that the California-based fintech firm had to delay the launch and the paper implied this was due to regulatory difficulties it in the United States.

In any case, earlier this year, an executive of the company reportedly confirmed the company’s plans about stablecoin. “We are exploring a stablecoin,” Bitcoin.com quoted the Paypal executive as saying at that time. “If and when we seek to move forward, we will, of course, work closely with relevant regulators.”

But as mentioned, the project has been put on hold and one of the issues is related to Paxos stablecoin issuer and brokerage. It has been proving Paypal with crypto features on its platform and it was supposedly working on the PayPal Coin as well.

But then, it was reported that Paxos is facing an investigation being carried out by the New York Department of Financial Services (NYDFS). This event has changed PayPal’s plans for its stablecoin.

Meanwhile, despite the delay, PayPal is reportedly still gearing up to introduce new crypto features for its users. Since 2020, the company has been allowing Bitcoin, Ethereum, and other cryptocurrency investments on its platform and users can also transact using crypto with other wallets.

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