The freshly minted stablecoin from PayPal will make its debut on Coinbase under an 'experimental' banner, reflecting PayPal’s strong yet somewhat debated presence in digital finance.
The U.S. leading crypto exchange Coinbase confirmed Starting August 3, Coinbase is ready to introduce PayPal’s novel stablecoin, PYUSD, assuming there's ample liquidity available.
This upcoming addition to Coinbase will carry an 'experimental asset' label, a tag for either brand-new tokens on the platform or those with smaller trading volumes across the crypto market.
Coinbase Adds Support for PYUSD
Coinbase’s statement highlights plans to support PayPal USD (PYUSD), paving the way for its availability as an ERC-20 token within the Ethereum ecosystem, covering regions that facilitate trading.
“When the supply of this asset reaches sufficient levels, we’ll roll out trading on our PYUSD-USD pairs gradually. Some jurisdictions might face restrictions on PYUSD support,” Coinbase clarified on its official page.
Earlier this month, PayPal and Paxos teamed up to roll out the stablecoin PayPal USD (PYUSD). Paxos, the creator behind BUSD, emphasized how PayPal’s new stablecoin showcases blockchain technology’s practical benefits.
Charles Cascarilla, CEO of Paxos, reinforced that PYUSD marks a vital milestone for digital currencies and financial sectors, ushering in the US dollar’s blockchain era.
However, a month after its launch, uptake of PYUSD hasn't lived up to expectations, even though it’s listed on major platforms like Crypto.com and Huobi. Kraken .
Will Binance List PYUSD?
Although a staple for a few years, stablecoins are yet to transform consumer payments. Instead, users largely leverage stablecoins to trade other cryptocurrencies like Bitcoin and Ethereum.
The stablecoin segment faced increased scrutiny ever since the collapse of TerraUSD (UST). Binance is urging a quick switch from BUSD holdings to other stablecoins before February 2024.
On August 31, Binance unveiled regulatory hurdles prompting Paxos to halt BUSD minting, leading Binance to phase out BUSD support.
In response to the transition, Binance is recommending alternatives like FDUSD and offering a free conversion program to aid this shift.
Beginning September 7, 2023, accessing BUSD withdrawals across networks including BNB Chain, Avalanche, Polygon, and Tron will be discontinued.
Nonetheless, users can still load funds until notified otherwise. Binance will pull BUSD from offerings like Liquidity Pools, Gift Cards, Lending, and leveraged trades.
This marks the end of an era for BUSD, which once held a top-three spot in stablecoin market capitalizations worldwide.
Binance's recent moves include terminating many BUSD trading pairs and excluding BUSD in new coin trades, while external pressures from global regulators mount.
Questions now swirl whether Binance will eventually onboard PYUSD, although official announcements remain absent.
Before venturing into stablecoins, Meta, formerly known as Facebook, launched the Libra stablecoin in 2019, which hit roadblocks with regulators fearing financial instability.
Ultimately, by February 2022, Meta offloaded the project through a $182 million deal with Silvergate Capital.
