PayPal’s recently announced PYUSD stablecoin is seeing early support from major cryptocurrency exchanges despite divided responses within the crypto community.
Huobi has officially announced it will list PYUSD, making it the first exchange to publicly back PayPal’s new stablecoin. Trading will be available on the PYUSD/USDT pair with zero handling fees.
“Huobi remains dedicated to fostering amicable collaboration with esteemed projects and institutions to collectively advance industry growth,” the exchange stated.
Trading will commence once PYUSD launches and achieves sufficient liquidity. Currently, only 26.9 million PYUSD are in circulation.
BitMart moved quickly as well, announcing PYUSD support shortly after Huobi. The exchange has already listed PYUSD against USDT, with deposits open and trading to begin on August 8.
Huobi and BitMart are aiming to tap into the growing demand for fiat-backed stablecoins as well as attract some of PayPal’s vast user base. Their swift embrace contrasts with more cautious responses from other major exchanges so far.
As the first platforms to openly back PYUSD, Huobi, and BitMart could gain a first-mover advantage if PayPal’s stablecoin sees rapid adoption. More cautious rivals may end up following their lead if PYUSD gains traction.
The cryptocurrency community continues to exercise caution when it comes to the PYUSD stablecoin. Concerns arise from the fact that Paxos, the issuer of PYUSD, faces issues related to centralization and security. There is a potential for Paxos to freeze or confiscate assets as mandated by government agencies or departments. Furthermore, PYUSD was developed using Solidity v0.4.24, which possesses inadequate scalability, weak security measures, and known vulnerabilities.
In response to these concerns, cryptocurrency experts advise community members to opt for purchasing Bitcoin and practicing self-custody, thus avoiding entrusting their funds to PayPal, despite Paxos’ endorsement.
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