PayPal’s PYUSD stablecoin tapped for transaction settlement on new TrueX exchange

PayPal’s PYUSD stablecoin has been tapped as the initial default settlement currency for a new crypto trading platform called TrueX, which came out of stealth Wednesday. The exchange was founded by two former high-level Coinbase employees, former head of exchange Vishal Gupta and engineer Patrick McCreary. 

The platform, built by parent company True Markets, will launch its trading functionality in the coming weeks, beginning with spot market trading for a few of the largest cryptocurrencies. These trades will be settled in PYUSD, the fourth largest stablecoin by market capitalization after Tether’s USDT, Circle’s USDC and MakerDAO’s DAI. 

In time, however, the platform plans to expand its range of stablecoin settlement options. Additional trading services are also being planned, Gupta told Fortune. 

While TrueX will be available in the United States, it will only be accessible to institutional investors. Unlike many crypto exchanges like Coinbase and Kraken, which the U.S. Securities and Exchange Commission has argued operate as unregistered brokers and custodians, TrueX is delegating its custodial needs to Paxos (the issuer of the PYUSD stablecoin).

True Markets closed a $9 million in seed round from investors including RRE Ventures, Reciprocal Ventures and Hack VC as well as Paxos, Solana Foundation and Aptos.