A cohort of former Coinbase executives is set to launch TrueX, a new digital asset exchange that will utilize PayPal’s stablecoin, PYUSD, as its primary settlement currency.
On Sept. 18, True Markets introduced TrueX, branding it as a “non-custodial, stablecoin-native exchange.” This venture garnered $9 million in seed funding from notable backers including Paxos, Solana Foundation, and Aptos.
According to a press release, TrueX has partnered with Paxos, the issuer of the PayPal USD stablecoin, to adopt PYUSD as the default settlement currency on its platform. PYUSD boasts a significant presence in the crypto world, with a market capitalization exceeding $730 million.
Stablecoins, like PYUSD, are designed to offer price stability and are typically backed by specific assets or algorithms; PYUSD is backed on a one-to-one basis by the United States dollar.
The minds behind TrueX, Vishal Gupta and Patrick McCreary, bring a wealth of experience from their tenure at Coinbase and other prestigious financial institutions. Gupta, before co-founding TrueX, led the exchange team at Coinbase and was head of USD Coin McCreary, a senior staff engineer at Coinbase, played a crucial role as one of the primary architects of Coinbase’s International Exchange. Both executives also held senior positions at Goldman Sachs.
Gupta highlighted the evolving demands of clients who prioritize the security of segregated execution and custody:
“Clients now demand the security of true segregation of execution and custody. Our team has worked diligently to meet these needs, leveraging the power of stablecoins to facilitate efficient liquidity and settlement solutions.”
TrueX plans to initiate service for U.S.-based institutions and some international entities.
This launch aligns with a growing trend where infrastructures are increasingly supporting the integration of institutions into the Web3 space, as evidenced by DBS Bank’s recent announcement on Sept. 17 about offering crypto options and structured notes to institutional investors later in the year.