Former Coinbase executives launch TrueX exchange, using PayPal’s PYUSD

Two former Coinbase employees, Vishal Gupta and Patrick McCreary, have launched TrueX, a new cryptocurrency exchange focused on stablecoin trading.

According to the press release, TrueX has chosen PayPal’s PYUSD (PYUSD) as its preferred currency over the more widely used USDC (USDC) stablecoin, which Gupta helped launch while working at Coinbase.

The platform aims to provide a seamless trading experience by focusing on stablecoins and allowing users to avoid the price volatility often associated with cryptocurrencies like Bitcoin (BTC).

We’ve been waiting for this for weeks and I’m so excited to announce my new venture!

RealX (@truex_exchange), a non-custodial, stablecoin-based exchange representing the next evolution in crypto markets, announced today that it has officially launched from stealth.

TrueX is… https://t.co/llT1WPPfgm

— Vishal K. Gupta (@vishalkgupta) September 18, 2024

TrueX will feature a matching engine that connects buyers and sellers, allowing transactions to be completed without the platform controlling the assets. This makes it a non-custodial exchange, meaning it does not hold users’ funds and reduces some of the risks associated with traditional exchanges.

Stablecoins are digital currencies designed to maintain a stable value, often pegged to traditional currencies like the US dollar.

Gupta and McCreary also worked at Circle and Goldman Sachs.

PY US dollar

TrueX’s use of PayPal’s PYUSD stablecoin is notable as it implies a shift away from more established stablecoins like USDC and Tether (USDT). PYUSD is issued by the Paxos Trust Company, which will also serve as TrueX’s custodian and securely hold users’ assets.

TrueX’s focus on stablecoins and its adoption of PYUSD could help PayPal’s stablecoin gain market share, especially as the platform expands. The exchange aims to stand out by offering fast and secure transactions without requiring users to switch between traditional financial systems and crypto platforms.

According to Fortune, the exchange is initially planned to be opened to institutional investors in the United States and its services are planned to be expanded over time.

Paxos participated in TrueX’s $9 million seed funding round alongside other investors including RRE Ventures and Hack VC.

“With its groundbreaking non-custodial model, strong leadership team and commitment to transparency, we believe TrueX is well-positioned to succeed in the market. We are excited to support TrueX and celebrate this launch as an investor and infrastructure provider.”

Walter Hessert, Head of Strategy at Paxos