Kraken Announces Support for PayPal's PYUSD Stablecoin
On August 21, cryptocurrency exchange Kraken announced that users can now begin trading the PYUSD stablecoin.
Kraken Announces Support for PayPal's PYUSD Stablecoin
Following Huobi, Kraken is the next exchange to announce support for PayPal's PYUSD stablecoin, a move by the payment giant to enter the cryptocurrency space.
Kraken notes that PYUSD is available exclusively on the Ethereum network, and users should not deposit the stablecoin through other chains to avoid potential loss of funds.
📣 New token available: $PYUSD @PayPal 🅿️
— Kraken Pro (@krakenpro) August 18, 2023
✔️ Deposits and withdrawals enabled
✔️ Trading starts on August 21
Learn more 👉 https://t.co/TpKTyTVC4p pic.twitter.com/QNyBfRxorG
Initially, the exchange supports two fiat pairs: PYUSD/USD and PYUSD/EUR, with a minimum deposit/purchase of 5 PYUSD.
PayPal USD (PYUSD) is backed by short-term U.S. Treasury bonds and other cash-equivalent assets, mirroring the collateralization models of popular stablecoins like Tether (USDT) and USD Coin (USDC). PayPal anticipates PYUSD to generate new revenue streams for the company.
Despite ongoing debates regarding functionality, costs, and underlying technology, PYUSD has been embraced by major players in the crypto industry, seen as a step toward advancing competitiveness within the sector.
Moreover, in early August, the U.S. House Financial Services Committee issued a statement urging accelerated discussions and approval of legislation overseeing stablecoins, coinciding with PayPal's launch of PYUSD.
