Former Coinbase executives have launched the TrueX exchange, utilizing PayPal PYUSD.

Vishal Gupta and Patrick McCreary, two ex-employees of Coinbase, have introduced TrueX, a cryptocurrency exchange that specializes in stablecoin trading.

In a recent press release, TrueX announced that it has selected PayPal's PYUSD (PayPal USD) as its preferred currency, moving away from the more commonly used USDC stablecoin, which Gupta helped launch during his time at Coinbase.

The platform is designed to provide a smooth trading experience by prioritizing stablecoins, enabling users to sidestep the price fluctuations typically seen with cryptocurrencies like Bitcoin.

TrueX (@truex_exchange), a non-custodial exchange focused on stablecoins and representing the next step in the evolution of crypto markets, has officially launched from stealth mode.

The exchange will feature a matching engine that links buyers and sellers, ensuring that transactions are executed without the platform holding any assets. This non-custodial approach means that user funds are not stored on the platform, thereby mitigating some of the risks associated with traditional exchanges.
Stablecoins are digital currencies intended to preserve a consistent value, typically linked to conventional currencies such as the U.S. dollar.

Gupta and McCreary have also held positions at Circle and Goldman Sachs.

PYUSD

TrueX's adoption of PayPal's PYUSD stablecoin is significant, indicating a departure from more established stablecoins like USDC and Tether. PYUSD is issued by Paxos Trust Company, which will also act as the custodian for TrueX, ensuring the secure storage of users' assets.

By focusing on stablecoins and integrating PYUSD, TrueX could enhance the market presence of PayPal's stablecoin, particularly as the platform grows. The exchange aims to differentiate itself by providing quick and secure trading options, eliminating the need for users to navigate between traditional financial systems and cryptocurrency platforms.

As reported by Fortune, the exchange will initially cater to institutional traders in the U.S., with plans for future service expansion.

Paxos was a participant in TrueX's $9 million seed funding round, alongside other investors such as RRE Ventures and Hack VC.

With the trux exchange entering the cryptocurrency market and using the pusd token as the main currency, what are the effects on the dominance of stable coins in this 2 trillion dollar market?

The entrance of Trux Exchange into the cryptocurrency market, especially with the use of the PUSD token as its main currency, has significant implications for the dominance of stablecoins in the $2 trillion market. Here are some potential effects:

### Increased Competition
The introduction of PUSD adds another player to the already competitive stablecoin market, which includes major tokens like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD). This competition can drive innovation and improvements in services as each stablecoin provider seeks to differentiate itself and capture market share.

### Diversification of Options
For investors and traders, the availability of PUSD offers more choices for hedging against the volatility of other cryptocurrencies. This diversification can be beneficial, as it provides more options for risk management and potentially more stable investment opportunities.

### Market Liquidity
The addition of a new stablecoin like PUSD can enhance market liquidity. With more stablecoins available, there are more assets to facilitate trading and transactions, possibly leading to increased trading volumes and smoother market operations.

### Trust and Stability
The success of PUSD will largely depend on the trust and stability it can offer compared to existing stablecoins. If Trux Exchange can successfully demonstrate that PUSD is secure, transparent, and well-regulated, it could capture a significant portion of the market. However, any instability or lack of transparency could harm its adoption.

### Regulatory Impact
The entry of a new stablecoin may attract additional regulatory scrutiny. Regulators might implement more stringent rules to ensure that all stablecoins, including PUSD, adhere to high standards of transparency, security, and solvency. This could have broader implications for the entire stablecoin sector.

### Influence on Market Dynamics
The introduction of PUSD could shift the dynamics of the stablecoin market. If PUSD gains rapid adoption, it could potentially reduce the market share of other stablecoins, affecting their valuations and utility. Conversely, if PUSD struggles to gain traction, it might not have a significant impact.

### Technology and Innovation
The technology underpinning PUSD and how it integrates with the Trux Exchange platform could set new standards in the industry. Innovations in transaction speed, cost, and security could push other stablecoin providers to enhance their offerings.

In summary, the entry of Trux Exchange and the PUSD token into the cryptocurrency market could lead to increased competition, greater market liquidity, and potential regulatory changes, all of which would influence the dominance and dynamics of stablecoins in the $2 trillion market. The ultimate impact will depend on the execution, trust, and adoption of PUSD relative to its competitors.

Why do more people still use centralized exchanges such as Binance and... despite decentralized exchanges that have high security?

Centralized exchanges (CEXs) like Binance remain popular for several reasons, despite the growing appeal of decentralized exchanges (DEXs) that often offer higher security and privacy. Here are some key factors contributing to the continued use of centralized exchanges:

1. **User-Friendly Interface**: Centralized exchanges typically offer more intuitive and user-friendly interfaces, making it easier for newcomers to navigate and trade. They often provide customer support, which can be invaluable for users who are not yet familiar with the intricacies of cryptocurrency trading.

2. **Liquidity**: Centralized exchanges generally have higher trading volumes and liquidity compared to decentralized exchanges. This means that users can buy and sell assets more quickly and at more stable prices, which is particularly important for large trades.

3. **Wide Range of Services**: Centralized exchanges often provide a broader array of services, such as margin trading, futures, staking, lending, and savings accounts. These additional features can attract users looking for more than just simple buy-and-sell transactions.

4. **Regulatory Compliance**: Many centralized exchanges comply with regulatory requirements, which can offer a level of trust and security for users. They often implement know-your-customer (KYC) and anti-money laundering (AML) procedures, which can be reassuring for those concerned about the legitimacy and safety of their transactions.

5. **Speed and Efficiency**: Transactions on centralized exchanges are typically faster than on decentralized exchanges, as they are not subject to the same network congestion and latency issues. This can be crucial for traders looking to capitalize on market movements.

6. **Security Measures**: While DEXs are praised for their security due to the absence of a central point of failure, many centralized exchanges have implemented robust security measures, such as cold storage, two-factor authentication, and insurance funds to protect against hacks.

7. **Ease of Fiat Conversion**: Centralized exchanges often allow users to deposit and withdraw fiat currency, making it easier to convert traditional money into cryptocurrency and vice versa. This can be a significant advantage for users who are not entirely immersed in the crypto ecosystem.

8. **Brand Recognition and Trust**: Established centralized exchanges like Binance have built strong reputations over time. Many users continue to trust and prefer these well-known platforms over newer, less-established decentralized exchanges.

While decentralized exchanges offer significant benefits like enhanced security, privacy, and control over one's funds, the convenience, features, and trust associated with centralized exchanges continue to make them a popular choice for many users. As the cryptocurrency landscape evolves, it is possible that DEXs will address some of these challenges, potentially shifting the balance over time.