Coinbase Unveils Listing of PayPal’s PYUSD Stablecoin on August 31, 2023

By 0xGorki 08/31/23 10:55 AM

Coinbase, one of the world’s leading cryptocurrency exchanges, has announced its plans to integrate support for PayPal’s USD-backed stablecoin (PYUSD) on the Ethereum network. This move aims to provide users with an additional option for stablecoin transactions while utilizing the benefits of Ethereum’s ERC-20 token standard.

The official announcement from Coinbase indicates that trading for PYUSD will commence on or after 9 AM PT on August 31, 2023, subject to the fulfillment of liquidity conditions. This highly anticipated event follows a week of speculation after Coinbase unveiled its roadmap to support PYUSD.

Coinbase will add support for PayPal USD (PYUSD) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds may be lost. Transfers for this asset are available on @Coinbase & @CoinbaseExch in the regions where trading is supported.

— Coinbase Assets 🛡️ (@CoinbaseAssets) August 30, 2023

Stablecoins have become an integral part of the cryptocurrency ecosystem due to their price stability and potential for facilitating seamless transactions. PayPal’s PYUSD is no exception, representing a USD-pegged stablecoin that is collateralized by short-term US Treasury bonds and other cash-equivalents. The issuance of PYUSD is a collaborative effort between PayPal and Paxos, a reputable stablecoin issuer responsible for coins like BUSD, which is associated with Binance.

This new addition to Coinbase’s platform reflects the growing popularity of stablecoins as a reliable and efficient medium for transferring value within the cryptocurrency space. By leveraging Ethereum’s ERC-20 token standard, users will be able to interact with PYUSD seamlessly, benefiting from Ethereum’s advanced smart contract capabilities and widespread adoption.

Notably, Coinbase emphasizes that PYUSD transfers should strictly occur within the Ethereum network to prevent the risk of funds being lost. This cautionary advisory underscores the importance of using the correct blockchain infrastructure for any given cryptocurrency, as the transfer of assets across incompatible networks can result in irreversible loss.

It’s worth mentioning that PYUSD’s journey to trading platforms has not been without its challenges. PayPal’s previous venture into stablecoins, specifically with the USD Coin (USDC) issued by Circle, faced regulatory scrutiny that resulted in a temporary suspension. However, PayPal’s collaboration with Paxos for the PYUSD stablecoin indicates a commitment to navigating regulatory challenges more successfully this time around.

Coinbase’s decision to integrate PYUSD into its platform follows similar moves by other prominent exchanges like Huobi, Kraken, and Crypto.com, who have also listed the stablecoin. This concerted effort by various exchanges to support PYUSD highlights the growing demand for stablecoins backed by traditional assets, a trend that reflects the maturation of the cryptocurrency industry.

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