Two former Coinbase employees, Vishal Gupta and Patrick McCreary, have launched TrueX, a new cryptocurrency exchange focused on stablecoin trading.
According to a press release, TrueX has chosen PayPal’s PYUSD (PYUSD) as its preferred currency instead of the more widely used USDC (USDC) stablecoin, which Gupta helped launch while at Coinbase.
The platform aims to offer a seamless trading experience by focusing on stablecoins, allowing users to avoid the price volatility often associated with cryptocurrencies like Bitcoin (BTC).
TrueX will feature a matching engine that connects buyers and sellers, ensuring transactions are completed without the platform controlling assets. This makes it a non-custodial exchange, meaning it doesn’t hold users’ funds, reducing some of the risks associated with traditional exchanges.
Stablecoins are digital currencies designed to maintain a stable value, usually pegged to traditional currencies like the U.S. dollar.
Gupta and McCreary also worked at Circle and Goldman Sachs.
PYUSD
TrueX’s use of PayPal’s PYUSD stablecoin is notable, as it suggests a shift away from more established stablecoins like USDC and Tether (USDT). PYUSD is issued by Paxos Trust Company, which will also serve as the custodian for TrueX, holding users’ assets securely.
TrueX’s focus on stablecoins and its adoption of PYUSD could help PayPal’s stablecoin gain market share, especially as the platform expands. The exchange aims to stand out by offering fast, secure trades without the need for users to move between traditional financial systems and crypto platforms.
According to Fortune, the exchange will initially be available to institutional traders in the U.S., with plans to expand its services over time.
Paxos participated in TrueX’s $9 million seed funding round, alongside other investors such as RRE Ventures and Hack VC.
“With its groundbreaking non-custodial model, strong leadership team and commitment to transparency, we believe that TrueX is well positioned to succeed in the market. We’re excited to support TrueX and celebrate this launch as an investor and infrastructure provider.”
Walter Hessert, Head of Strategy at Paxos
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