Coinbase, the largest cryptocurrency exchange in the United States, has revealed its plans to introduce trading for PayPal’s newly launched stablecoin, PYUSD, starting on August 31, subject to meeting liquidity requirements.
This announcement came via a Coinbase tweet, with trading scheduled to commence “on or after 9 AM PT.” However, it’s important to note that the rollout of PYUSD trading will be carried out in phases, and there may be restrictions for users in specific regions.
Coinbase Imposes Experimental Label
Coinbase’s decision to add PYUSD to its trading platform marks it as an “experimental” asset. Typically, Coinbase applies the experimental label to assets that are relatively new on the platform or have lower trading volumes compared to more established cryptocurrencies within the exchange’s marketplace.
Further, this classification means that Coinbase closely monitors these experimental assets and may remove the label when they no longer meet the specified criteria.
PayPal’s PYUSD Stablecoin
PayPal, in partnership with Paxos, launched the PYUSD stablecoin earlier this month. Moreover, this stablecoin has already found listings on several cryptocurrency exchanges, including Huobi, Kraken, and Crypto.com.
However, despite its availability on multiple platforms, the adoption of PYUSD has been slower than anticipated. The total supply of PYUSD tokens currently stands at approximately 43 million.
Challenges in PYUSD Adoption
A recent report from Nansen has shed light on the apparent lack of demand for PYUSD among the cryptocurrency user base. The underwhelming demand potentially arises from PayPal’s strategic focus on a distinct demographic for its stablecoin, which may not align with the preferences and expectations of the broader crypto community.
In summary, Coinbase’s decision to trade PayPal’s PYUSD stablecoin introduces it as an experimental asset on the platform comes after a relatively slow start for PYUSD adoption in the cryptocurrency market. Lastly, Coinbase’s careful monitoring of experimental assets ensures that they meet the platform’s criteria for continued listing.
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