In a move that signals further convergence between the worlds of cryptocurrency and digital payments, prominent cryptocurrency exchange Coinbase has announced its plans to incorporate support for the recently unveiled PayPal stablecoin, PYUSD. This strategic step is poised to facilitate seamless transactions and increase accessibility to the burgeoning PayPal stablecoin.
Exchanges like Huobi, Kraken, and Crypto.com have listed it, but its uptake is gradual. There are around 43 million PYUSD tokens in circulation. A recent report by Nansen highlights low demand from crypto users, possibly due to PayPal’s focus on a distinct user group.
Coinbase Welcomes PYUSD Integration
Coinbase took to Twitter to share the news through a thread of tweets, unveiling their intentions to integrate PYUSD onto the Ethereum network as an ERC-20 token. The exchange also issued a word of caution, advising users to avoid sending this asset over networks other than Ethereum to avert the risk of fund loss.
As the anticipation builds, the exchange users within regions where trading is supported can anticipate being able to initiate transfers involving the PayPal USD (PYUSD) stablecoin through both the official Coinbase platform and Coinbase Exchange. Trading activities for PYUSD are scheduled to kick off at 9 AM PT on the 31st of August, provided that requisite liquidity conditions are met.
Initial trading will focus on establishing a substantial supply of the PYUSD stablecoin. Subsequent trading stages will witness the rollout of PYUSD-USD trading pairs. It is important to note that regulatory considerations might result in certain jurisdictions having restricted access to PYUSD support.
For those interested in the technical particulars, the Ethereum network’s ERC-20 contract address for the PayPal USD (PYUSD) stablecoin is 0x6c3ea9036406852006290770bedfcaba0e23a0e8. Regarding trading specifics, the PYUSD-USD pairs will be featured on both the Coinbase Exchange and Advanced Trade platforms, with transaction fee structures at 0 basis points (bps) for makers and 0.1 bps for takers.
It is worth highlighting that Coinbase’s integration of PYUSD will carry an “Experimental” label, indicating the platform’s cautious approach as it delves into this new avenue. This deliberate approach underscores Coinbase’s commitment to maintaining the security and integrity of its offerings.
However, Coinbase’s decision to incorporate the PYUSD stablecoin demonstrates a willingness to embrace innovation and diversify its portfolio. The move is poised to not only enhance the exchange’s offerings but also offer users greater flexibility and convenience in their financial transactions.
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