Two former Coinbase executives, Vishal Gupta and Patrick McCreary, have announced the launch of TrueX. The new cryptocurrency exchange will focus on stablecoins, using PayPal Holdings Inc.’s PYUSD as its “token of choice for transactions.”
according to Bloomberg a reportTrueX primarily aims to serve the needs of institutional investors in the United States and select international markets.
The move comes at a time when stablecoins, such as PYUSD, have become an integral part of the crypto ecosystem, providing a stable value pegged to the US dollar and acting as a bridge to trading other digital assets.
TrueX and its place in the cryptocurrency market
Vishal Gupta, who co-founded TrueX, previously led the launch of the USDC stablecoin while at Circle and was also the head of exchange at Coinbase.
According to Bloomberg, co-founder Patrick McCreary was a senior engineer on the Coinbase team, and both have backgrounds at Goldman Sachs.
We’ve been waiting for this for weeks and I’m excited to announce my new project!
Troix (@real_exchangeToday, the non-custodial stablecoin exchange, which represents the next evolution in the cryptocurrency markets, announced its official launch via stealth.
TrueX is… https://t.co/llT1WPPfgm
– Vishal K. Gupta (@vishalkgupta) September 18, 2024
Gupta emphasized that their team’s experience in “running brokers, building matching engines, and launching stablecoins” qualifies them to innovate in the cryptocurrency exchange market. In his words:
Our goal is to continue to innovate in the marketplace. And who better to do that than a team that has built multiple matching engines, managed brokerage firms, worked at Goldman Sachs, launched one of the world’s largest stablecoins, and runs one of the world’s largest cryptocurrency exchanges.
According to Bloomberg, TrueX stands out from other exchanges by focusing solely on stablecoin transactions, capitalizing on the growing demand for digital assets that can mitigate the volatility typically associated with cryptocurrencies.
How will TrueX work?
TrueX will primarily use PayPal’s stablecoin, PYUSD, which is known for its peg to the US dollar. Stablecoins like PYUSD are increasingly being used as safe haven assets during volatile market conditions and to simplify transactions in the crypto ecosystem.
According to the report, Paxos Trust Co., the issuer of PYUSD, will provide third-party custody services to TrueX users, “to ensure a safe and compliant trading environment.”
Paxos is also one of the investors backing TrueX, having contributed to the exchange’s seed funding round, where TrueX received nearly $9 million from venture capitalists including Hack VC and RRE Ventures.
We are happy to be back. @Vishal Gupta and @real_exchangea new non-custodial, stablecoin exchange, represents the next evolution in the cryptocurrency markets.https://t.co/14bgVHTuLN
— Reciprocal Ventures (@recvcx) September 18, 2024
Featured image created using DALL-E, a chart from TradingView.