Huobi and BitMart Embrace PayPal’s Stablecoin PYUSD, Highlighting Decentralization Dilemma in DeFi
In Brief
Crypto exchanges Huobi and BitMart have both announced support for PYUSD, PayPal’s newly launched stablecoin.
The PYUSD launch has sparked discussions about its potential impact on the decentralized finance ethos.
Huobi has revealed that it will be the first to list PayPal’s new stablecoin PYUSD and offer a PYUSD/USDT trading pair with no trading fees. The exchange said it will launch the trading pair as soon as the market is ready.
“Huobi has always been committed to maintaining friendly communication with high-quality projects and institutions in the blockchain industry to jointly promote the development of the industry,” Huobi wrote in the announcement.
Another crypto exchange BitMart has also revealed the primary listing of PayPal’s stablecoin. Users can now trade PYUSD against USDT on BitMart.
Only yesterday PayPal launched PYUSD, which is pegged to the U.S. dollar and backed by cash and cash equivalents. Primarily, PYUSD aims to facilitate transfers and payments in U.S. dollars across the world. Currently, the issued stablecoin totals 26.9 million.
The news is surprising because PYUSD is meant only for Venmo and PayPal users. You can only send it to others within the PayPal network, not to different platforms or wallets. This is a definite statement from PayPal. Though, PayPal may have decided to do something different now.
If only Huobi made the announcement, some might think it’s just a way to grab attention, especially since the exchange is going through a tough time. The cryptocurrency exchange is facing allegations of insolvency and impropriety. Investor Adam Cochran claims that Huobi is using customer funds as its own piggy bank and that its founder, Justin Sun, is involved in shady dealings. Huobi has denied the allegations, but there have been massive outflows from the exchange, and its future is uncertain.
PayPal Stablecoin Poses a Threat to Decentralized Finance?
PYUSD is a centralized stablecoin that is issued and controlled by PayPal. This means that PayPal can freeze user accounts and confiscate PYUSD at will. It could threaten DeFi, which is based on the principle of trustless transactions. In DeFi, users have complete control over their funds. They can send and receive tokens without relying on a third party like PayPal, which makes DeFi more secure and resistant to censorship.
The launch of PYUSD could be a sign that centralized players are trying to take over DeFi. If PayPal succeeds, it could set a precedent for other centralized companies to launch their own stablecoins. Already, major payment companies like Visa, Mastercard, and Stripe are developing stablecoin solutions on Ethereum. They see a growing demand and profit potential for stablecoins.
PayPal’s stablecoin may attract some mainstream users who value convenience and security, but it’s not aligned with the DeFi ecosystem, which aims to create a more open and inclusive financial system.
Read more:
- Stripe Unveils Fiat-to-Crypto Onramp for Easy and Secure Way to Purchase Cryptocurrencies
- Intense Week in Crypto – CPI, PPI, Huobi Rumors, CRV Loans
- Tron Founder Justin Sun Claims Unfair Token Acquisition by Huobi Founder’s Brother
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
