Former Coinbase Execs Adopts PayPal’s PYUSD For New Exchange

Two Former Coinbase employees, Vishal Gupta and Patrick McCreary, have launched a stablecoin-focused exchange named TrueX. The platform has adopted PayPal’s PYUSD for its operations ahead of the USDC stablecoin, which Gupta helped launch while working at Coinbase.

Ex-Coinbase Execs Adopt PYUSD For New Exchange

Gupta and McCreary announced the debut of their TrueX crypto exchange at the ongoing Token2049 conference in Singapore. Interestingly, despite overseeing the launch of the USDC stablecoin, Gupta has chosen PayPal’s PYUSD as the primary settlement currency for trading on their platform. As the PYUSD’s issuer, Paxos Trust Company will serve as a third-party custodian for TrueX.

It is worth mentioning that the Stablecoin issuer is also invested in the exchange. They participated in the platform’s seed funding round, which raised $9 million. The exchange is also backed by venture capitalist (VC) firms like RRE Ventures, Reciprocal Ventures, Accomplice Blockchain, and Hack VC.

Gupta mentioned on his X platform that TrueX will be a non-custodial, stablecoin-native exchange revolutionizing the crypto markets. The crypto exchange represents the flagship product of True Markets, a platform set to offer markets and liquidity as a service globally.

TrueX will feature a matching engine that facilitates price discovery and matches buy and sell orders. The platform will not control any of the assets and will simply ensure that transactions are completed using stablecoins. By doing this, the crypto exchange aims to separate execution and custody for unmatched efficiency and transparency.

The TrueX founders had previously worked at Coinbase. Gupta worked as the head of the exchange, while McCreary was a senior staff engineer at the crypto exchange. Both of them had also previously worked at Goldman Sachs. Gupta is confident that their experience makes them the right individuals for this venture.

TrueX’s launch follows a recent announcement by Mt. Gox’s former CEO, Mark Karpeles, who revealed plans to launch his crypto exchange. However, unlike TrueX, which is focused on US clients, Karpeles’ EllipX exchange will be based in Europe.

TrueX Will Enable Support For Other Stablecoins Soon Enough

This decision by ex-Coinbase employees to adopt PayPal’s PYUSD as the default settlement currency on TrueX is said to be temporary. The crypto exchange will extend support for other stablecoins like USDT and USDC when it launches its trading functionality in the next two to four weeks. Meanwhile, the platform will still ensure that trades are executed seamlessly.

TrueX plans to roll out its functionality in phases. In the initial phase, the platform will only provide spot trading for a handful of major crypto assets. Gupta also confirmed that trading will only be open to US institutional traders.

A Major Boost For PYUSD

This launch of the TrueX exchange by the ex-Coinbase employees could provide a major boost for PayPal’s PYUSD. PYUSD is currently ranked as the fifth-largest stablecoin with a market cap of $733 million. However, the coin is still well behind the foremost stablecoins, USDT and USDC, which currently boast market caps of $118 and $35 billion, respectively.

USDC’s adoption is also surging as the stablecoin’s issuer Circle has expanded to Brazil and Mexico. USDC will be available in these countries through local bank transfers and real-time payment systems. This is a major boost for the stablecoin, as it has successfully integrated into two of the largest Latin American economies.