Cryptocurrency exchange, Huobi has committed to supporting PayPal’s entry into the digital currency landscape with its stablecoin, PYUSD.
On Monday, PayPal and Paxos unveiled the PayPal USD (PYUSD) stablecoin, backed by US dollar deposits, short-term Treasuries, and similar cash equivalents.
In an official statement on August 8, Huobi announced its role as the first exchange to support PYUSD. Huobi mentioned that trading would kick off with the PYUSD/USDT trading pair, accompanied by a policy of zero handling fees.
The exchange has assured users of their readiness to commence trading once “favorable market liquidity and circulation metrics are aligned.” Currently, the total issued PYUSD stands at $26.9 million.
Like other widely recognized stablecoins, PYUSD can be redeemed for US dollars anytime. Additionally, it’s exchangeable for other cryptocurrencies supported by PayPal.
Furthermore, BitMart has announced the primary listing of the PYUSD stablecoin. The exchange has incorporated the stablecoin into a trading pair, specifically PYUSD/USDT, and has initiated the deposit process.
Traders can engage in trading activities starting from August 8 at 06:00 AM UTC, while withdrawals will be possible from August 8 at 10:00 AM UTC.
Cryptocurrency Community Divided Over PayPal Stablecoin’s Security
The cryptocurrency community, however, finds itself divided over the security of the stablecoin. Concerns about centralization and security have arisen regarding the Paxos-issued PYUSD stablecoin.
Experts have criticized the “asset protection” security feature, which reportedly allows freezing and removal of an individual’s balance, branding it a potential “centralization attack vector.” Paxos retains the authority to freeze or seize assets based on government mandates.
In light of these concerns, cryptocurrency experts recommend the community considers buying Bitcoin and adopting self-custody solutions, advising against entrusting funds to PayPal, despite Paxos’ support.
Moreover, it’s important to mention that PYUSD is built on Solidity v0.4.24, a version with a reputation for lack of scalability, weak security, and known vulnerabilities.
Within less than 24 hours since its launch, fraudulent activities have emerged. Scammers are capitalizing on the recent introduction of PayPal’s dollar-pegged stablecoin, PayPal USD (PYUSD), issuing counterfeit tokens across various networks. Currently, over 60 such fake tokens have been identified on platforms like Ethereum and BNB Chain.
In related updates, Justin Sun, Huobi’s adviser and TRON founder, extended an offer to PayPal on X. He invited PayPal to explore the prospect of launching PYUSD on TRON—a platform renowned for its speed, security, and cost-effectiveness, managing a substantial 12 billion USD in daily transactions.
Featured image from The Times Of India, chart from TradingView.com