By
Godfrey Benjamin
April 26th, 2024
Despite entering the list of approved digital assets, PayPal’s PYUSD stablecoin may not experience the instantaneous adoption initially anticipated following the launch.
Crypto.com, a Singapore-based digital assets trading platform, has formed a strategic alliance with PayPal and Paxos to strengthen its global standing as the preferred exchange for the PayPal stablecoin PYUSD.
The move builds on the existing business relationship between PayPal and Crypto.com, enabling users to fund their Crypto.com Visa Cards through PayPal. The two companies plan to further explore and introduce enhanced capabilities for topping up and facilitating commerce in the coming years.
Crypto.com to Soon Launch More Trading Features for PYUSD
In an official announcement on September 28, the company highlighted its current status as the leading global exchange with the deepest liquidity for PYUSD trading pairs. Crypto.com has already listed PYUSD for trading, catering to retail and institutional investors. The Singapore-based exchange also disclosed its intention to introduce additional trading features in the near future.
Joe Anzures, senior vice president of Americas and global head of payment partnerships at Crypto.com, described PayPal as a “true pioneer in the digital commerce evolution” and Paxos as a “market-leading issuer of stablecoins” while commenting on the partnership.
“We are tremendously excited to team up with them to advance the crypto frontier collectively. Connecting our more than 80 million users to the latest crypto innovations and supporting PayPal’s global network of consumers and merchants will be pivotal in our continued pursuit of crypto for every wallet,” said he.
PayPal Stablecoin Available on Other Exchanges
PayPal made its debut in the crypto market in August with the launch of its stablecoin. The digital asset, built on the Ethereum blockchain, is fully backed by US dollar deposits, short-term Treasurys, and similar cash equivalents, maintaining a 1:1 peg to the US dollar.
PYUSD has already gained listings on major exchanges like Bitstamp, Coinbase, and Kraken, and it serves as a payment option accepted by BitPay and Metamask. Last week, Coinspeaker reported that Venmo users gained access to the stablecoin.
In the same month, the New York State Department of Financial Services included PYUSD on its list of approved coins, further bolstering its regulatory status.
PayPal’s PYUSD Adoption May Face Delays
Despite entering the list of approved digital assets, PayPal’s PYUSD stablecoin may not experience the instantaneous adoption initially anticipated following the launch.
In an August report, analysts at the Bank of America pointed to the rising popularity of central bank digital currencies (CBDCs) as a potential cause for the delay.
Additionally, the analysts Alkesh Shah and Andrew Moss identified another factor that could contribute to PYUSD’s delayed adoption, noting that the emergence of yield-bearing stablecoins may prompt investors to redirect their preferences away from PYUSD.