In significant crypto news, Crypto.com, a well-known payments and cryptocurrency exchange, and financial giant, PayPal, have formed a strategic partnership. Crypto.com has positioned itself as an exchange of choice for PayPal’s stablecoin, PayPal USD (PYUSD). Furthermore, the exchange has incorporated PYUSD into its listings, benefitting both institutional and retail investors alike.
Backed by cash equivalents, U.S. dollar deposits, and short-term U.S. Treasury bonds, PYUSD is an ERC-20 token issued on the Ethereum blockchain network by Paxos Trust Company. Crypto.com has professed to offer the deepest liquidity globally for PYUSD trading pairs, thereby enhancing the appeal for this token.
The significant increase in the trading pairs’ liquidity will connect over 80 million Crypto.com users to the latest crypto innovations and also support PayPal’s extensive consumer and vendor network, by making crypto even more accessible. This initiative aligns with Crypto.com’s ongoing pursuit to bring “crypto to every wallet,” as stated by Joe Anzures, global head of payment partnerships at Crypto.com.
The collaboration aligns with the pre-existing integration strategy between the two major players in the digital finance space. Facilitating PayPal-based top ups of Crypto.com Visa Cards is one of those strategies, broadening their collaborative reach.
While the PYUSD stablecoin can also be found on selected other exchanges like Bitstamp, Coinbase, and Kraken, broader adoption has been a little underwhelming. Since its launch, the stablecoin offering by PayPal has faced its share of criticism. A predominating concern is the supposed lack of interest from crypto users.
Indeed, recent analyses from Nansen’s blockchain analytics platform suggested as much – about 90% of all PYUSD tokens are reportedly still held in the wallets of stablecoin issuer Paxos Trust. This figures alongside a fact that purportedly an insignificant number of “smart money” investors – these being the well-informed or professional investor group – have shown interest in PayPal’s stablecoin.
In conclusion, while a promising endeavor, the integration of PayPal’s PYUSD into Crypto.com’s trading platform will continue to be scrutinized for its desired perception and consequent uptake by institutional and retail crypto enthusiasts alike. This process may well serve as an interesting litmus test for similar collaborations in the future. Only time will tell whether the pros of a partnership and integration such as this, outweigh the initial scepticism and inherent cons.
Source: Cryptonews
