Kraken introduces support for stablecoin PayPal, PYUSD
Date: 2023-08-19 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Kraken announced on August 18 that it has added support for the PayPal stablecoin, also known as PayPal USD or PYUSD.
The cryptocurrency exchange said PYUSD deposits and withdrawals are currently open and added that it will open trading on August 21st.
Kraken has stated that the PayPal stablecoin will initially be available on Kraken and Kraken Pro. He noted that he will add support for PYUSD in his Kraken app and instant buy features once custom trading has provided sufficient liquidity for the asset.
Kraken's announcement also states that the PYUSD deposit and order sizes must be at least $5.00 and that orders can be accurate to 4 decimal places. The exchange will offer US dollar (USD) and euro (EUR) trading pairs. Kraken has further instructed users to deposit the PayPal stablecoin only on the Ethereum blockchain.
Wider adoption on the way
PayPal unveiled its stablecoin on August 7 when it announced that PYUSD would serve as a fully collateralized asset pegged to the dollar. However, apart from its own app, PayPal provided few details about the platforms on which PYUSD could be purchased.
While Kraken was one of the first crypto exchanges to include PYUSD, several others have followed suit, demonstrating greater market acceptance of the stablecoin. ByBit also announced plans to support PYUSD on August 17, while Changelly announced support for PYUSD on August 11. Huobi announced support for the asset on August 8th. The two largest crypto exchanges in operation, Binance and Coinbase, have not announced such plans.
Hardware maker Ledger also announced an integration with PayPal on August 16, shortly after the PYUSD disclosure. While Ledger has stated that this will provide access to the four PayPal-supported cryptocurrencies, it has not stated that it will provide access to PYUSD.
According to on-chain data, $26.9 million worth of PYUSD has already been issued, indicating strong market activity around the new stablecoin. However, this is not reflected by major market aggregators such as CoinMarketCap and Coingecko, which instead list PYUSD as untracked and previewed assets, respectively.
