TrueX's parent company has received a $9 million Seed round investment from RRE Ventures, Hack VC, Paxos, Solana Foundation, and Aptos.
Former Coinbase Senior Employee Launches Crypto Exchange TrueX, Using PYUSD as Main Stablecoin
Bloomberg cited information from the sidelines of the TOKEN2049 conference saying that in the near future, there will be the appearance of a new cryptocurrency exchange called TrueX .
In particular, the stablecoin of the payment industry giant PayPal ( PYUSD ) will be selected to become the main stablecoin of TrueX, playing an equivalent Vai to USDC in the Coinbase ecosystem.
However, after TrueX officially launches trading in the next two to four weeks, the exchange will aim to diversify stablecoins, allowing traders the right to switch to using different stablecoins like USDC for payments and collateral.
Two former high level Coinbase employees are launching a cryptocurrency platform called TrueX that will use PayPal's stablecoin as its preferred Token for transactions https://t.co/9OkPvL3KNY
— Bloomberg (@business) September 18, 2024
According to the source, TrueX will be founded by two former senior members at Coinbase - Vishal Gupta, former Head of Markets, and former software engineer Patrick McCreary.
TrueX, the exchange arm of parent company True Markets , has completed a $9 million Seed round from leading Capital such as RRE Ventures, Reciprocal Ventures, Paxos , Accomplice Blockchain, Hack VC, Solana Foundation and Aptos .
TrueX will feature a proprietary matching engine to efficiently match trade orders, ensuring separation between trade execution and asset custody.
Unlike Coinbase, which Vai as a broker and custodian for the transaction — which has drawn the ire of the SEC for allegedly offering securities services without a license — TrueX will partner with Paxos as its licensed custodian.
In the initial launch phase, TrueX will only have Spot Trading functionality for a few popular assets, and will only be available to institutional traders operating in the US. Derivative trading functionality, or other products, will be introduced in the future.
We've been waiting weeks for this and I'm excited to announce my new venture!
— Vishal K. Gupta (@vishalkgupta) September 18, 2024
TrueX ( @truex_exchange ), a Non-Custodial, stablecoin-native exchange representing the next evolution in crypto markets, today announced that we have officially launched out of stealth.
TrueX is the… https://t.co/llT1WPPfgm
The fact that a new crypto exchange has chosen PayPal's stablecoin can be said to be a strategy to stimulate usage for PYUSD, in the context that Tether (USDT) is monopolizing up to 75% of the stablecoin market share .
Launched in August 2023, PYUSD started off slow on Ethereum layer-1, reaching just $42 million in Capital cap. However, Paxos’ efforts to increase PYUSD’s visibility, such as integrating it into the Triple-A payment platform andsupporting international payments, have helped the stablecoin’s market Capital grow in usage.
According to data from CoinMarketCap, the stablecoin PYUSD currently has a market Capital of over $700 million, with a peak of $1 billion in circulation , just over a year after its launch. Notably, this growth rate has been faster since its deployment on the Solana network in May 2024.
Capital of PayPal's stablecoin PYUSD on CoinMarketCap on the evening of September 18, 2024.
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