On April 29, PayPal announced that the SEC concluded its investigation into PayPal USD (PYUSD) and would not be taking any enforcement action. The investigation, initiated with a subpoena in November 2023, concerned PayPal's US dollar-backed stablecoin.
The SEC notified PayPal in February that it was closing the inquiry. PayPal's PYUSD has a market capitalization of $880 million, which is less than 1% of Tether's $148.5 billion.
Since the beginning of 2025, PYUSD circulating supply has increased by 75%, according to CoinGecko. On April 23, PayPal introduced rewards for PYUSD, offering US users 3.7% annually for holding the asset on the platform.
PayPal also announced a partnership with Coinbase on April 24 to increase PYUSD adoption. In the first quarter, PayPal's earnings reached $1.33 per share, exceeding analyst expectations of $1.16, with revenue rising 1% year-over-year to $7.8 billion.