Ex-Coinbase Employees Launch TrueX, a Stablecoin-Based Crypto Exchange

Two former Coinbase employees who worked at the company’s highest level plan to launch a new crypto platform called TrueX. According to a Bloomberg report, the new platform will incorporate PYUSD, a stablecoin associated with PayPal Holdings Inc., as the main transaction token. The platform aims to reach the main users from United States institutions and some selected users from other countries.

Two former high level Coinbase employees are launching a cryptocurrency platform called TrueX that will use PayPal’s stablecoin as its preferred token for transactions https://t.co/9OkPvL3KNY

— Bloomberg (@business) September 18, 2024

TrueX is founded by Vishal Gupta, who worked with Coinbase as the director of the exchange, and Patrick McCreary, a senior engineer from Coinbase. Gupta previously spearheaded the USDC stablecoin at Circle Internet Financial Ltd., while both executives worked at Goldman Sachs Group Inc. They bring expertise in stablecoin development and experience in some of the largest financial institutions to the company.

“Our goal is to continue to innovate in the market space,” Gupta commented. “And 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.”

Capitalizing on the Changing Crypto Landscape

TrueX joins a growing list of startups aiming to capitalize on market gaps created by FTX’s collapse two years ago. Other notable entries include Backpack Exchange, founded by former FTX and Alameda Research employees, and EDX Markets, a crypto trading platform backed by Citadel Securities and Fidelity Digital Assets.

The new exchange aims to fill the void in the institutional market, leveraging its team’s extensive background in both traditional finance and cryptocurrency. As stablecoins become a critical bridge in the crypto ecosystem, TrueX’s reliance on PYUSD could offer institutions more stability amid the volatility of digital assets.

Paxos Trust Co., the issuer of PYUSD, will serve as the third-party custodian for TrueX’s users, adding an extra layer of security for institutional investors. Paxos is also among the investors backing TrueX, having participated in a $9 million seed funding round alongside venture capital firms such as RRE Ventures and Hack VC.