PayPal Stablecoin Issuer Paxos Can Freeze and Seize Assets
In Brief
PayPal stablecoin issuer Paxos Trust Company can reportedly freeze users’ funds and transactions.
According to the information for PYUSD published on GitHub, in case of a serious security threat, Paxos can suspend PYUSD’s authorization and transfer functions and seize or freeze funds and assets that belong to criminal parties if it is required by law.
PayPal stablecoin issuer Paxos Trust Company can reportedly freeze users’ funds and transactions.
According to the information for PayPal’s stablecoin PayPal USD (PYUSD) published on GitHub, in case of a serious security threat, Paxos is able to suspend PYUSD’s authorization and transfer functions. In addition, the stablecoin issuer has the possibility to seize or freeze funds and assets that belong to criminal parties if it is required by law. Moreover, addresses that have AssetProtectionRole permissions are able to initiate the freezing and unfreezing of accounts and can wipe the balance of any account.
According to blockchain journalist Colin Wu of Wu Blockchain, Paxos stated that it would not perform the freeze operation itself. Notably, the stablecoins USD Tether (USDT) and USD Coin (USDC) also feature a similar mechanism of blacklist freezing.
Leading online payment platform, PayPal, announced the launch of its stablecoin on Monday, August 7. PayPal USD, which is built as an ERC-20 token on the Ethereum blockchain, can be bought or sold through PayPal at a rate of $1.00 per PayPal USD. The stablecoin is backed by U.S. dollar reserves, short-term U.S. Treasuries, and similar cash equivalents.
Eligible United States-based users already have access to several benefits offered when purchasing PayPal USD. For instance, individuals can transferPYUSD between PayPal and compatible external wallets, send person-to-person payments using PayPal USD, convertany of PayPal’s supported cryptocurrencies to and from PayPal USD, and fund purchaseswith PayPal USD by selecting it at checkout.
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Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
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Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
