Coinbase, the renowned cryptocurrency exchange, has recently unveiled its plan to delve into trading with PayPal's brand-new stablecoin, PYUSD, starting from August 31st, as long as the necessary liquidity conditions are satisfactorily met.
Coinbase will add support for PayPal USD (PYUSD) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds may be lost. Transfers for this asset are available on @Coinbase & @CoinbaseExch in the regions where trading is supported.— Coinbase Assets ????️ (@CoinbaseAssets) August 30, 2023
In a tweet released by the company, it was divulged that trading activities would kick off "on or after 9 AM PT," and this rollout would transpire in a gradual, phased manner, particularly focusing on the PYUSD-USD pairs. It's worth noting that potential restrictions may come into play in specific jurisdictions, adding an extra layer of complexity to the endeavor.
In the preceding week, Coinbase tantalizingly hinted at the prospect of incorporating PYUSD into its multifaceted platform. This recent, solid confirmation firmly establishes the fact that the exchange is positioning itself to provide support for PYUSD under the experimental banner. This distinct categorization is typically reserved for assets that are comparatively nascent within the platform or exhibit less robust trading volumes when juxtaposed with the more seasoned cryptocurrencies featured within its expansive digital marketplace.
As a consequence, the exchange will rigorously monitor the performance of these experimental assets, and it may entertain the notion of removing the "experimental" tag when such assets no longer conform to the predefined criteria, thereby paving the way for more mainstream acceptance.
PayPal's stablecoin, which saw the light of day earlier this month through a strategic partnership with Paxos, has already found its place on several exchanges, including prominent names like Huobi, Kraken, and Crypto.com. Nonetheless, the adoption curve for PYUSD has been somewhat slower than initially anticipated, largely attributed to its current total supply, hovering at approximately 43 million tokens.
In an interesting twist, a recent report by Nansen has shone a spotlight on the conspicuous lack of demand for PYUSD within the cryptocurrency community. This phenomenon could potentially be linked to PayPal's deliberate targeting of a specific demographic for its stablecoin, which adds an intriguing layer of nuance to the unfolding narrative.