Kraken Becomes Latest Exchange to Support PayPal’s New Stablecoin

    On August 18, Kraken made an announcement stating that it had integrated support for PayPal's stablecoin, which is commonly referred to as PayPal USD or PYUSD.

    Currently, Kraken has opened deposits and withdrawals for PYUSD, PayPal’s stablecoin. Trading for PYUSD will commence on August 21. Initially, Kraken and Kraken Pro will be the platforms where PayPal’s stablecoin can be accessed. However, Kraken plans to extend support for PYUSD on its Kraken App and Instant Buy features once there is sufficient liquidity generated from user trading.

    Kraken’s announcement also outlines certain requirements for PYUSD deposits and order sizes. The minimum value for deposit and order sizes is set at $5.00, and orders can have up to 4 decimal points of precision. The exchange will offer trading pairs with U.S. dollars (USD) and euros (EUR). Kraken further advises users to deposit PayPal’s stablecoin exclusively on the Ethereum blockchain.

    Broader adoption is on the way

    On August 7, PayPal introduced its stablecoin, PYUSD, declaring it as a fully-backed asset pegged to the dollar. However, aside from its own app, PayPal provided limited information about the platforms where PYUSD could be acquired.

    Following Kraken’s lead, several other cryptocurrency exchanges have also incorporated PYUSD, indicating a broader acceptance of the stablecoin in the market. ByBit announced their plans to support PYUSD on August 17, while Changelly did so on August 11. Huobi announced their support on August 8. However, the two largest crypto exchanges, Binance and Coinbase, have not made any similar announcements.

    On August 16, hardware manufacturer Ledger announced integration with PayPal, shortly after the unveiling of PYUSD. Although Ledger mentioned access to PayPal’s four supported cryptocurrencies, it did not specify if PYUSD would be included.

    According to on-chain data, PYUSD with a value of $26.9 million has already been issued, indicating significant market activity surrounding the new stablecoin. However, major market aggregators like CoinMarketCap and Coingecko currently categorize PYUSD as untracked and previewed assets, respectively.

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