PayPal’s stablecoin (PYUSD) has been listed on Coinbase, and other exchanges, after the likes of Kraken, ByBit, Huobi, and Crypto.com made it available for trading. Unfortunately, the last couple of months have been difficult for the asset class as the market cap of stablecoins declined for the 17th consecutive month. Tether’s USDT, Stellar’s (XLM), and Circle’s USDC are currently under threat with the introduction of PayPal’s stablecoin (PYUSD) into the market. Its adoption is fast spreading as Coinbase announces support for it. PYUSD is a U.S. dollar-pegged stablecoin that maintains 1:1 with the fiat currency and is backed by secure and highly liquid assets. The custody and the issuance of the asset will be the responsibility of the blockchain-focused firm Paxos Trust Company. North Carolina Congressman Patrick McHenry, the Chairman of the House Financial Services Committee, has called for the need to introduce a regulatory framework for stablecoins. He believes that clear regulations and robust consumer protections are essential to enabling stablecoins to achieve their full potential. The Coinbase listings come at the point stablecoins experience a market cap dip with USDT declining for the first time in nine months. In August alone, its market cap fell by $82.9 million, representing 1.2 percent. In general, the stablecoin market recorded a fall for the 17th consecutive month, falling by 0.4 percent and losing $125 billion. On top of this, trading volume also saw a considerable decline. The reasons have been linked to tighter regulatory scrutiny, rising interest rates, as well as the fading investors’ enthusiasm caused by the long period of bearish run. On August 29, the total market cap of stablecoins fell to $123 billion before bouncing back. USDC relinquished almost half of its share due to the struggle of its reserve holder Silicon Valley Bank. The US regulatory scrutiny is also pushing BUSD out of the market while other external factors are creating a hostile environment that impedes the growth of the asset class. However, recent court rulings in cases involving crypto-related companies are restoring confidence in the market.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Patrick McHenry, Paxos Trust Company |
| Companies | Huobi, Paxos Trust Company, ByBit, Kraken, Crypto.com |
| Currencies | Tether, Stellar, USD Coin, Ethereum, Bitcoin |
| Securities | None |
