As a seasoned analyst with over two decades of experience in the financial industry, I’ve witnessed the evolution of digital assets from their infancy to their current maturity. The addition of PayPal’s stablecoin PYUSD to major exchanges like OKX is an exciting development that underscores the growing acceptance and legitimacy of cryptocurrencies.
PayPal’s stablecoin PYUSD, valued at $1.00 with a 24-hour volatility of only 0.2%, is steadily gaining traction on significant exchanges, having been introduced just a year ago. This week, OKX, a prominent global digital asset trading platform, declared that they have integrated the token into their spot market.
Today at 9:00 am UTC, the company announced that they have made the stablecoin deposits accessible. Withdrawals for these deposits are scheduled to start tomorrow, October 4, around 10:00 am UTC.
A New Player among Established Rivals
Starting today, PYUSD will be available for trading on OKX alongside other prominent stablecoins such as Tether (USDT) and Circle’s USD Coin (USDC). These two coins are among the most influential in the market. As per CoinMarketCap, USDT currently holds a market cap of approximately $119.63 billion, while USDC maintains around $35.54 billion.
In August 2024, the newcomer to the crypto world, PYSUD, surpassed the $1 billion market capitalization mark. Although it currently trails behind its more experienced competitors, there’s optimism that PayPal’s dominance as a global payments leader may propel PYUSD towards greater growth in the future years.
The digital currency, known as PYUSD, is directly tied to the value of the U.S. dollar and can only be issued by the Paxos Trust Company, a company based in the U.S. that specializes in blockchain custody. When it was first introduced, PYUSD was made available on Ethereum‘s platform as a token compatible with the ERC-20 standard, making it the sole stablecoin supported by PayPal’s payment systems.
Expanding Accessibility with Solana
As a crypto investor, I’m always on the lookout for solutions that make my transactions smoother and less costly. Recently, I’ve noticed PayPal expanding its support for PYUSD to include the Solana blockchain. This means that using this stablecoin is now more efficient for me, as the Solana network tends to have lower transaction fees compared to Ethereum. It’s a move that I appreciate and one that could potentially benefit us all in the long run.
By introducing PYUSD on the Solana blockchain, we’re stepping closer to our aim of creating a digital currency suitable for commerce and transactions with a stable worth. The quickness and scalability of the Solana network make it an excellent choice for new payment systems that are affordable, swift, and immediate,” expressed PayPal.
To strengthen this project, the company has teamed up with Crypto.com, a digital currency exchange platform headed by Kris Marszalek and Phantom, a self-managed Web3 wallet designed for the Solana network. The collaboration is intended to facilitate easy access to PYUSD on the Solana platform.
Back in May, I was thrilled to discover that my trusted payment platform had formed yet another strategic alliance – this time with MoonPay, a prominent blockchain infrastructure service. This collaboration allowed me, as well as other users, the convenience of purchasing various cryptocurrencies, including PYUSD, directly from our PayPal accounts.
A Surge of Interest in Stablecoins
Simultaneously, the dynamic landscape of the stablecoin market is attracting numerous businesses seeking opportunities within it. Notably, Ripple has recently minted 99% of its upcoming stablecoin’s initial supply, Ripple USD (RUSD), for testing on both the Ethereum blockchain and the XRP Ledger.
In simple terms, we’re referring to a digital investment product that hasn’t been approved by U.S. regulators yet. This product is designed with a focus on large financial institutions seeking ways to minimize risks associated with market fluctuations.
In September, BitGo, a well-known cryptocurrency custody company, announced its entry into the stablecoin market with plans to debut its own digital currency, USDS. The company claims that this stablecoin will be the first one available on the market, allowing for open participation right from its launch.
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2024-10-03 16:18