Two former high-level employees from Coinbase Global Inc. are launching a new cryptocurrency platform called TrueX. This platform will use PayPal’s stablecoin, PYUSD, as its main token for transactions. The co-founders, Vishal Gupta and Patrick McCreary, both have strong backgrounds in finance and technology. Gupta was previously the head of exchange at Coinbase and helped launch the USDC stablecoin, while McCreary was a senior engineer at Coinbase.
Trading in the cryptocurrency industry continues to be fragmented, as it was when FTX failed in late 2022, although it was at its peak then. TrueX is going to hit the market after more than a year of research and development. Fourthly, the platform will concentrate on stablecoins, which means that it will deal with less risk compared to normal cryptocurrencies such as Bitcoin or Ethereum.
Both Tether and USDC are examples of stablecoins, which are cryptocurrencies backed by a stable asset with less volatility than other cryptocurrencies. TrueX will utilize this new currency, called PYUSD, as if it were US dollars within its environment. As mentioned, TrueX is expected to launch in the next two to four weeks and will integrate several interchangeable stablecoins.
TrueX Secures $9 Million in Seed Funding for Launch
The decision to state PYUSD is an effective business approach to distinguish itself from Coinbase, where USDC is utilized predominantly. Although PYUSD has not been a case of rapid expansion as seen with USDC or Tether, the integration with PayPal and issuer Paxos presents possible future prospects for the platform.
While Coinbase operates as a trading platform and a custodian, TrueX plans to collaborate with Paxos as its custodian company. At first, TrueX will lack depth and breadth; it will only engage in spot trading for a few assets and target institutional players. It has recently launched with $9 million of seed capital from multiple investors and intends to promote marketplace participation through a liquidity fund.
In this way, TrueX intends to stand out in the new world of cryptocurrencies with this innovative concept.
