PayPal says the US Securities and Exchange Commission has abandoned its investigation into the payment giant's US-dollar stablecoin.

PayPal said in an April 29 regulatory filing that the SEC concluded its investigation into PayPal USD (PYUSD) and wouldn't be taking any action.

The U.S. Securities and Exchange Commission has closed its investigation into PayPal's stablecoin without any enforcement action, the payment giant announced on Monday.

The SEC’s Division of Enforcement subpoenaed PayPal in November 2023 to investigate its stablecoin, PayPal USD (PYUSD).

“The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request,” PayPal said in a statement at the time.

However, the SEC notified PayPal in February that the agency “was closing this inquiry without enforcement action,” the firm said in its latest regulatory filing.

PayPal’s stablecoin is 100% redeemable for U.S. dollars and “fully backed” by dollar deposits, including short-term treasuries and cash equivalents.

But the stablecoin has struggled to gain momentum in a crowded market, with rivals Tether and Circle's stablecoins boasting much larger market capitalizations.

PYUSD has a market cap of just $880 million, less than 1% of Tether’s (USDT) $148.5 billion.

PayPal's stablecoin has seen better growth this year with a 75% increase in PYUSD circulating supply since the beginning of 2025, according to CoinGecko. It remains down 14% from its peak supply of just over $1 billion in August 2024.

That growth could be bolstered by a company announcement on April 23 introducing rewards for PYUSD in a new loyalty offering that will enable U.S. users to earn 3.7% annually for holding the asset on the platform.

Meanwhile, on April 24, PayPal announced a partnership with Coinbase (NASDAQ:COIN) to increase the adoption of PYUSD.

“We are excited to drive new, exciting, and innovative use cases together with Coinbase and the entire cryptocurrency community, putting PYUSD at the center,” said Alex Chriss, PayPal President and CEO.

The payments giant also reported robust first-quarter earnings and the completion of significant share repurchase activities.

Chriss added that the firm beat Wall Street estimates, earning $1.33 per share in the first quarter, topping analyst expectations of $1.16. Revenue rose 1% from a year before to $7.8 billion.