PYUSD Stablecoin Will Be Used For Trading Various Other Crypto Assets On Crypto.com

JAKARTA - Crypto.com, a Singapore-based digital asset trading platform, has formed a strategic alliance with PayPal and Paxos to strengthen its position globally as an options exchange for PayPal's stablecoin PYUSD.

The move expands the existing business relationship between PayPal and Crypto.com, allowing users to fund their Crypto.com Visa Card via PayPal. Both companies plan to continue exploring and introducing better capabilities for top-ups and facilitating trade in the coming years.

In an official announcement on September 28, the company highlighted its current status as a leading global exchange with the deepest liquidity for the PYUSD trading pair. Crypto.com already lists PYUSD for trading, serving retail and institutional investors. The Singapore-based exchange also expressed its intention to introduce additional trading features in the near future.

Joe Anzures, senior American vice president and head of global payment partnerships at Crypto.com, described PayPal as a "true whistleblower in the evolution of digital trade" and Paxos as a "leading stablecoin issue in the market" when commenting on the partnership.

"We are very excited to collaborate with them to advance the crypto world together. Connecting more than 80 million of our users to the latest crypto innovations and supporting the global PayPal network of consumers and traders will be key in our ongoing efforts for crypto for all groups," he said.

PayPal made its debut on the crypto market in August with the launch of its stablecoins. These digital assets, built on the Ethereum network, are fully supported by US dollar deposits, short-term bonds, and similar supporting assets, keep a fixed value of 1:1 against the US dollar.

PYUSD has received offers on major exchanges such as Bitstamp, Coinbase, and Kraken, and is used as a payment option received by BitPay and Metamask. Last week, Coinspeaker reported that Venmo users also had access to this stablecoin.

In the same month, the Department of State Financial Services of New York included PYUSD in the list of approved coins, which further strengthen its regulatory status.

PYUSD Adoption Runs Slowly Due To CBDC

Although included in the list of digital assets approved, PayPal's PYUSD stablecoins may not experience instant adoption which was originally anticipated after launch.

In a August report, analysts at the Bank of America showed the growing popularity of central bank digital currencies (CBDCs) as a potential delay.

Additionally, analysts Alkesh Shah and Andrew Moss identified other factors that could contribute to the delay in PYUSD adoption, noting that the emergence of stablecoins that generate yields can encourage investors to divert their preferences from PYUSD.