Two ex-senior executives from Coinbase, Vishal Gupta and Patrick McCreary, have announced the launch of TrueX. This new crypto exchange will focus on stablecoins, using PayPal Holdings Inc.’s PYUSD as its “preferred token for transactions.”
According to a Bloomberg report, TrueX aims to cater primarily to institutional investors in the US and select international markets.
This move comes as stablecoins, like PYUSD, have become integral to the crypto ecosystem, offering a stable value pegged to the US dollar and serving as a bridge for trading other digital assets.
TrueX and Its Place In The Crypto Market
Vishal Gupta, who co-founded TrueX, previously led the launch of the USDC stablecoin while working at Circle and was also the head of exchange at Coinbase.
According to Bloomberg, his co-founder, Patrick McCreary, was a senior staff engineer at Coinbase, with both having backgrounds at Goldman Sachs.
We’ve been waiting weeks for this and I’m excited to announce my new venture!
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
— Vishal K. Gupta (@vishalkgupta) September 18, 2024
Gupta emphasized that their team’s experience in running “broker-dealers, building matching engines, and launching stablecoins” positions them well to innovate in the crypto exchange market. In his words:
Our goal is to continue to innovate in the market space. nd who better to do it than a team who has built many matching engines, who have run broker dealers, have worked at Goldman Sachs, launched one of the largest stablecoins in the world and run one of the biggest crypto exchanges in the world.
As reported by Bloomberg, TrueX differentiates itself from other exchanges by focusing solely on stablecoin transactions, leveraging the growing demand for digital assets that can mitigate the volatility typically associated with cryptocurrencies.
How Will TrueX Work?
The TrueX exchange will primarily use PayPal’s stablecoin, PYUSD, known for its one-to-one peg with the US dollar. Stablecoins like PYUSD are increasingly used as safe harbor assets during volatile market conditions and to simplify crypto-ecosystem transactions.
According to the report, Paxos Trust Co., the issuer of PYUSD, will provide third-party custodian services for TrueX users, “ensuring a secure and compliant trading environment.”
Paxos is also one of the investors backing TrueX, contributing to the exchange’s seed funding round, where TrueX received roughly $9 million from venture investors, including Hack VC and RRE Ventures.
We are thrilled to back @vishalkgupta and @truex_exchange, a new non-custodial, stablecoin-native exchange representing the next evolution in crypto marketshttps://t.co/14bgVHTuLN
— Reciprocal Ventures (@recvcx) September 18, 2024
Featured image created with DALL-E, Chart from TradingView.