Cryptocurrency exchange Huobi has announced that it will soon list the newly launched PayPal’s PYUSD stablecoin. In a statement released on August 8th, Huobi stated that it will be the first cryptocurrency exchange to support the launch of PYUSD stablecoin. It further added that it will provide PYUSD/USDT trading pairs with a permanent 0 trading fee. However, Huobi did not provide a specific timeline for the listing, mentioning that it will open trading when the market circulation and liquidity conditions are ripe.
According to on-chain data, a total of 26.9 million PYUSD has been issued so far, with only eight holders. The majority of the stablecoin total supply, 99%, is held by Paxos and an address called 0x264bd8. The limited number of holders could potentially impact the stability and liquidity of the PYUSD stablecoin in the market.
The decision to list the PayPal stablecoin comes amidst recent rumors of insolvency surrounding Huobi. Despite these rumors, Huobi has not recorded large outflows in the past week, as reported by various media platforms. A spokesperson from Huobi dismissed the reported outflows and attributed them to errors from data sources. On August 7th, Huobi also denied any reports of its executives being arrested in China, labeling the news as “FUD” (fear, uncertainty, and doubt). The exchange clarified that its platform is operating as usual and is witnessing active participation.
Justin Sun’s Support and Invitation
Justin Sun, the founder of Tron Network and an advisor to Huobi, has expressed his support for the exchange amid the rumors. He denied all the rumors and encouraged trust in the vision and community efforts for a stronger future. On August 7th, Sun extended an invitation to PayPal to issue its newly launched stablecoin on his blockchain network, Tron. He highlighted the advantages of Tron, such as its speed, security, and cost-effectiveness, with a daily transaction volume of $12 billion. Sun emphasized the potential mutual benefits for both PayPal and Tron in the digital payment landscape.
Tron’s Position in the Stablecoin Market
According to DeFillama data, Tron is currently the second-largest blockchain for stablecoins, with approximately $43.96 billion worth of assets on its network. The dominant stablecoin on Tron is Tether’s USDT. Earlier this year, Sun expressed his ambition to improve Tron’s infrastructure and increase its stablecoin market cap to $60 billion by the end of the year.
Huobi’s decision to list PayPal’s PYUSD stablecoin is a significant development in the cryptocurrency market. Despite recent insolvency rumors, Huobi remains steadfast and continues to operate normally. The invitation extended by Justin Sun further underscores the potential collaboration between PayPal and Tron in the digital payment landscape. As the stablecoin market continues to grow, it will be interesting to see how the listing of PYUSD on Huobi impacts its circulation, liquidity, and overall market position.