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PayPal Stablecoin PYUSD Trading Launches on Major US Exchange

Mon, 08/21/2023 - 17:00
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Gamza Khanzadaev
PayPal stablecoin PYUSD makes grand debut on major exchange Kraken
PayPal Stablecoin PYUSD Trading Launches on Major US Exchange
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In a swift turn of events, renowned cryptocurrency exchange Kraken has introduced trading for PayPal's highly anticipated stablecoin, PYUSD, a mere three days subsequent to its listing announcement. The trading debut unveiled two distinctive pairs: PYUSD against the euro (EUR) and the United States dollar (USD). Remarkably, the trading volume for the USD pair has already surged to a staggering 12 times that of its European counterpart.

Ripple CTO Reacts to New Fed Requirements for PayPal Stablecoin PYUSD

Talk about PayPal's stablecoin launch first surfaced in early August, a development that sent ripples across the financial realm. The stablecoin, which bears the stamp of Paxos Trust, gains its intrinsic value from deposits housed within the U.S. financial ecosystem, primarily comprising short-term treasury bills and analogous cash equivalents.

More about PayPal's PYUSD

Since its formal inauguration, a whopping 40.68 million PYUSD tokens have been freshly minted, signifying the considerable enthusiasm that underpins its launch. Analyzing data from Etherscan, it becomes apparent that PYUSD has managed to gather 105 distinct holders. Unsurprisingly, Paxos and Paxos Treasury addresses emerge as the predominant stakeholders, controlling an impressive 95.07% of the entire stablecoin supply.

US Fed Reacts to PayPal Stablecoin PYUSD With Warning and Restrictions

The initiation of PYUSD has not been devoid of regulatory scrutiny. Shortly after its emergence, the U.S. Federal Reserve stepped forward with a significant statement: while the utilization of PayPal's stablecoin is not prohibited, banks must judiciously secure authorization and guidance from the competent authorities prior to integrating PYUSD into their payment infrastructure or offering stablecoin services to their customers.

The launch of PayPal's PYUSD on a prominent exchange like Kraken holds substantial implications, effectively bridging the gap between traditional financial systems and the thriving cryptocurrency landscape.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.