PayPal has halted its work on its stablecoin due to partner Paxos being investigated by the New York Department of Financial Services. Former U.S. Securities and Exchange Commission official John Reed Stark stated that the regulatory scrutiny of crypto firms is why PayPal has made this decision. He adds that any US financial company that interacts with public blockchains is viewed as too risky. Stark's comments come after Kraken was accused of selling unregistered securities, leading to the company paying a $30m fine and removing its staking feature in the US. (u.today)

PayPal's putting work on its stablecoin on ice amid increasing regulatory scrutiny, Bloomberg News reported, citing a source.

Tether has been using Cantor Fitzgerald to manage more than half of the $67 billion in bonds, cash, and loans backing its stablecoin (USDT), reports the WSJ.

It appears that the circulation of the stablecoin usd coin has decreased while tether’s has grown, as the latest statistics paint a contrasting picture. Tether saw a 3% increase in coins in circulation over the last month, while the U.S. dollar-pegged crypto asset usd coin recorded a decrease of approximately 4.9% in the same time frame. From Jan. 6, 2023, to Feb. 10, approximately $2.196 billion worth of usd coin was redeemed over the past month.

MakerDAO recently announced the successful integration of Chainlink Automation. As the creator of DAI, the protocol has onboarded Chainlink to its Keeper Network.

Aave, one of crypto’s largest decentralized finance (DeFi) protocols, has deployed its native stablecoin GHO on Ethereum’s Goerli testnet, Aave Companies, one of the firms that develops the lending protocol, announced Thursday.

The New York Department of Financial Services (NYDFS) is investigating stablecoin issuer Paxos, CoinDesk has learned.

Coinbase CEO Brian Armstrong said on Feb. 8 that his company has heard rumors that the United States’ main securities regulator intends to ban staking.

The Bank for International Settlements (BIS) plans to sharpen its focus on stablecoins and Central Bank Digital Currencies (CBDCs) in 2023, with the goal of “improving payment systems” and “securing the financial sector,” according to its latest report.

Stani Kulechov, the founder of the decentralized finance (DeFi) protocol Aave, highlighted several issues within the DeFi space at the StarkWare Sessions 2023, held at The Cameri Theatre in Tel Aviv, Israel.