The New PayPal Stablecoin Coming to Coinbase under Experimental Label
If you’re a user of Coinbase, you’ll soon have access to PayPal’s new stablecoin, PYUSD. Coinbase has confirmed that it will add PYUSD to its platform starting from August 3, as long as there is enough liquidity for the token. This listing will be labeled as an “experimental asset,” which means that it is either a newcomer to the exchange or has lower trading volumes compared to other cryptocurrencies.
Coinbase Adds Support for PYUSD
According to Coinbase, PYUSD will be available as an ERC-20 token on the Ethereum network. You’ll be able to transfer PYUSD through Coinbase and Coinbase Exchange in regions that support trading. However, support may be restricted in some jurisdictions.
PayPal partnered with Paxos to launch PYUSD earlier this month. Despite its availability on popular exchanges like Crypto.com, Huobi, and Kraken, the uptake of PYUSD has not met expectations. It remains to be seen if Binance will list PYUSD in the future.
Hot Take: Stablecoins and Regulatory Pressure
Stablecoins, including PYUSD, have not gained significant traction in consumer payments. Instead, people mainly use stablecoins as a medium for exchanging other cryptocurrencies like Bitcoin and Ether.
Binance recently announced that it will discontinue its support for the stablecoin BUSD due to regulatory actions against its issuer, Paxos. This decision raises questions about the possibility of Binance listing PYUSD in the future.
It’s worth noting that previous attempts by Meta (formerly Facebook) to introduce the Libra stablecoin faced resistance from financial regulators and policymakers. Meta eventually divested the project in 2022.
In conclusion, the addition of PayPal’s stablecoin to Coinbase is an exciting development, but its success will depend on user adoption and regulatory factors. Keep an eye on the evolving landscape of stablecoins as they continue to shape the digital finance space.
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