Paxos

In February, the New York Department of Financial Services ordered issuer Paxos to stop minting the token, which was once the third-largest stablecoin.

PayPal USD will be issued by digital trust company Paxos Trust, backed by dollar deposits and U.S Treasuries, and subject to oversight by the New York State Department of Financial Services.

Stablecoin issuer Paxos and crypto exchange Gemini tweeted they do not have any relationships with SVB.

The revelation led crypto-trading firms to publicly distance themselves from Silvergate, including Coinbase, Paxos Trust Galaxy Digital Holdings and Bitstamp, among others.

On Wednesday, Paxos Trust said in a statement it has “virtually no exposure to Silvergate … As a regulated institution, Paxos has always focused on protecting customers’ funds so banking redundancy is built into our platform.”