As per an announcement on the official X account on August 18th, cryptocurrency exchange Kraken is set to begin trading PayPal’s stablecoin, PYUSD, starting from August 21st. This move further solidifies the growing presence of stablecoins in the digital asset market.
Kraken’s implementation will allow users to deposit and withdraw funds, with a minimum transaction value of $5 USD, limited to the Ethereum Blockchain.
This decision by Kraken follows in the footsteps of several other exchanges that previously added PYUSD to their platforms since PayPal introduced the stablecoin on August 7th.
PYUSD is fully backed and pegged to the US Dollar, contributing to its swift adoption in the market. ByBit, Changelly, and Huobi have all integrated PYUSD into their services. On-chain data shows strong market activity for PYUSD, with around $26.9 million USD worth of PYUSD issued.
Before Kraken’s announcement, hardware wallet manufacturer Ledger had partnered with PayPal to provide a secure platform for users to access cryptocurrencies. This integration enables US users to purchase digital assets like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin through their linked PayPal accounts via the Ledger Live companion app.
Assets purchased are automatically transferred to the user’s Ledger hardware wallet, streamlining the purchasing process. However, this collaboration doesn’t currently include access to PYUSD through Ledger, limiting the stablecoin’s accessibility on exchanges at the moment.
Despite the increasing acceptance of PYUSD, concerns about regulations surrounding stablecoins still persist. US Congresswoman Maxine Waters has emphasized the need for comprehensive oversight of stablecoins like PayPal’s PYUSD to protect users and ensure financial stability.
Waters’ concerns are not unfounded, given PayPal’s vast global customer base surpassing that of many central banks.
The emergence of PayPal’s PYUSD stablecoin has notably impacted the digital asset market, evident by its listing on major exchanges like Kraken and growing user adoption.