In a move that marks a significant intersection between traditional finance and the emerging crypto sector, Coinbase has revealed plans to list PayPal’s stablecoin, PYUSD. This announcement follows Kraken’s recent integration of PYUSD trading, signaling a major step towards the stablecoin’s widespread acceptance.
Coinbase Assets confirmed the development on Twitter, stating, “Today we added a new asset to our roadmap: PayPal USD (PYUSD). The Ethereum network (ERC-20 token) contract address for PayPal USD (PYUSD) is 0x6c3ea9036406852006290770bedfcaba0e23a0e8.”
However, Coinbase issued a warning in an official blog post: “Please note that transfers and trading of these or any other assets are not supported until an official listing announcement is made. Depositing these assets into your Coinbase account prior to an official announcement could result in a permanent loss of funds.”
Coinbase and PayPal Unite
Launched earlier this month by PayPal in partnership with Paxos Trust Company, PYUSD is a stablecoin fully backed by U.S. dollar deposits and short-term U.S. treasuries. The stablecoin aims to provide a secure and stable transaction medium in the fast-growing web3 space. According to PayPal’s official press release, PYUSD will be redeemable at a 1:1 ratio for U.S. dollars and will soon feature a monthly public reserve report, audited by an independent third-party accounting firm.
The timing of Coinbase’s announcement is particularly significant, as the exchange recently enabled users in Germany and the UK to link their PayPal accounts for streamlined crypto transactions. Daniel Seifert, Vice President and Regional Managing Director of EMEA at Coinbase, highlighted the strategic synergy, stating, “Coinbase aims to enhance economic freedom globally by making crypto transactions easier, safer, and faster, thereby reducing the limitations of the traditional banking system.”
Since its launch, PYUSD has had a modest start, with 40.8 million PYUSD minted and a 24-hour trading volume of $2.3 million, as per CoinMarketCap data. While Paxos and Paxos Treasury currently hold 91.4% of the total stablecoin supply, this percentage is expected to decrease as more holders enter the market.
The listing of PYUSD on Coinbase represents a critical milestone that could bridge the divide between traditional financial systems and the digital asset world. With its underlying assets mainly consisting of short-term treasury bills and cash equivalents, PYUSD offers a level of stability and trust that could accelerate its adoption across diverse financial platforms.
As the crypto landscape continues to evolve, PYUSD’s listing on Coinbase could have wide-ranging effects, potentially challenging the market dominance of Tether (USDT) and setting new benchmarks for stablecoin utility and global acceptance.
