According to the exchange, the new PayPal stablecoin is coming to Coinbase under an experimental label. PayPal is a major player in digital finance, but many people don’t trust the platform.
Leading US crypto exchange Coinbase confirmed that it will add PayPal’s recently launched stablecoin PYUSD starting August 3, subject to sufficient liquidity for PYUSD.
The forthcoming listing is being labeled as an “experimental asset,” meaning tokens that are either new to the exchange or have relatively lower trading volume compared to the broader cryptocurrency market.
Coinbase adds support for PYUSD
According to Coinbase’s announcement, it will enable compatibility with PayPal USD (PYUSD) as an ERC-20 token on the Ethereum network. PYUSD transfers are available through Coinbase and Coinbase Exchange in the regions that support trading. The confirmation of the listing came after the first mention of the exchange last Friday.
“Once there is sufficient supply of this asset, trading in our PYUSD-USD trading pairs will begin in phases. PYUSD support may be limited in some supported jurisdictions,” Coinbase noted in its official account.
Earlier this month, PayPal announced a partnership with Paxos to launch stablecoin PayPal USD (PYUSD). Paxos Trust Company is also the issuer of BUSD. The blockchain infrastructure company said PayPal’s stablecoin demonstrates the value of blockchain technology in the real world.
Charles Cascarilla, CEO of Paxos, also stated that PYUSD is the most important advance for digital assets and the financial industry and represents the next phase of the US dollar on the blockchain.
However, almost a month after its launch, PYUSD’s acceptance has not lived up to expectations despite being available on popular exchanges such as Crypto.com, Huobi, and Kraken.
Will Binance List PYUSD?
Although stablecoins have been around for several years, they have yet to gain significant traction in the consumer payments ecosystem. Rather, consumers predominantly use stablecoins as a medium for exchanging other cryptocurrencies such as bitcoin and ether.
Since the collapse of TerraUSD (UST), stablecoin has been under increased regulatory pressure. Binance has urged users to quickly convert their BUSD holdings to alternative stablecoins prior to February 2024.
According to Binance’s August 31 announcement, the main reason for this decision is regulatory action against Paxos. The issuer of the BUSD has been ordered to stop minting the new BUSD. These regulatory actions have left Binance with no choice but to end its support for BUSD.
To facilitate this transition, Binance has recommended alternative stablecoins like FDUSD and even introduced a free conversion program to help users.
Effective September 7, 2023, BUSD payout portals will cease operations on various networks including BNB Chain, Avalanche, Polygon, and Tron.
However, the loading port will remain in operation until further notice. Additionally, Binance will remove BUSD from various product offerings including liquidity pools, gift cards, loans and leveraged transactions.
This development marks the end of an era for BUSD, which once held a prominent position among the top three stablecoins in the world by market cap.
Binance’s recent actions come in line with the recent delisting of several BUSD trading pairs and the decision not to support trading in BUSD for newly listed coins. Binance is under a lot of pressure from regulators around the world.
Binance’s recent actions also raise questions about the possibility of a future listing of PYUSD on the exchange. So far, the exchange has not issued any official comments or statements regarding the possible listing of PYUSD.
Before PayPal, Meta (formerly Facebook) launched the Libra stablecoin in 2019. However, these efforts have met significant opposition from financial regulators and policymakers, who have raised concerns about the potential disruption to global financial stability.
As a result, Meta elected to divest the project in February 2022 under a $182 million deal with Silvergate Capital.
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