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.
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.
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.