PayPal’s Stablecoin PYUSD Now Available on Coinbase
Yesterday, Coinbase announced that it has added the PayPal stablecoin PYUSD to its platform, allowing users to buy, sell, convert, send, receive, and store PYUSD tokens. PYUSD is currently in an experimental phase, available on the web version of the exchange as well as the iOS and Android app. This comes less than a month after PayPal officially announced PYUSD, an ERC-20 token on the Ethereum network fully collateralized in US dollars (USD) or equivalent. However, PYUSD’s market capitalization is still very low compared to other stablecoins, such as First Digital USD and TrueUSD. With its addition to Coinbase, the market capitalization of PYUSD may increase. It’s worth noting that PayPal’s crypto services are currently only available to users in the US and Great Britain.
PYUSD on Coinbase
- PYUSD can now be bought, sold, and stored on Coinbase
- It is currently only tradable in USD and only available within the PYUSD-USD pair
- The PYUSD-USD trading pair on Coinbase quickly became PayPal’s main stablecoin trading pair by volume
- More trading pairs may be enabled on Coinbase, potentially increasing PYUSD’s market capitalization
- PYUSD offers high security and solidity, attracting users despite lower privacy levels
PayPal and cryptocurrencies
- PayPal is the third largest platform for online payments in the western world
- They opened up to cryptocurrencies in 2020, allowing trading and withdrawals
- PayPal currently provides crypto services in only a few countries
- Depositing cryptocurrencies on PayPal’s custodial wallet allows for easy fiat currency payments
- It is still too early to judge the success of PYUSD and PayPal’s crypto services
Hot Take
The addition of PayPal’s stablecoin PYUSD to Coinbase is a significant development for both platforms. It provides Coinbase users with another stablecoin option and potentially increases PYUSD’s market capitalization. However, the limited availability of PayPal’s crypto services and the current experimental phase of PYUSD may hinder its widespread adoption. The success of this initiative will depend on how PayPal expands its crypto services globally and whether PYUSD gains traction in the market. Only time will tell if PayPal’s foray into cryptocurrencies will have a lasting impact.
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