Coinbase and PayPal announced an expanded collaboration aimed at accelerating the adoption and utility of PayPal USD (PYUSD), PayPal’s U.S. dollar–pegged stablecoin. Under the agreement, Coinbase will enable zero-fee, 1:1 conversions between USD and PYUSD for both retail and institutional clients on its custody and trading platforms, while exploring new on chain use cases for the token.
The move will allow millions of PayPal customers to seamlessly access PYUSD through Coinbase’s infrastructure, granting them a direct on ramp to blockchain based financial services. Users will be able to convert dollars to PYUSD instantly and back again without incurring conversion fees, leveraging Coinbase’s best-in-class custody to ensure full USD reserve backing.
“We’re thrilled to team up with PayPal to drive widespread stablecoin adoption”, said a Coinbase spokesperson. “By delivering trusted and seamless custody, distribution and access to PYUSD, we continue to scale the future of payments”.
As part of the expansion, Coinbase plans to integrate support for PYUSD with PayPal’s largest merchant partners, enabling faster, lower-cost payment settlement compared to traditional rails. Both companies will also collaborate on research and development to explore programmable on chain applications, potentially spanning subscription billing, payroll disbursements, and cross border remittances.
Background: Why PYUSD Matters
PayPal USD (PYUSD) launched in late 2023 to offer a blockchain‐native dollar stablecoin with full USD reserves. As digital payments shift on-chain, PYUSD provides:
- Price Stability: 1:1 peg eliminates crypto volatility risk.
- Speed & Cost Efficiency: Near-instant settlement at minimal on-chain fees.
- Programmability: Enables smart-contract driven use cases (e.g., automated subscriptions).
Since inception, PYUSD has moved billions in volume, and now Coinbase will supercharge its reach.
Stablecoins have seen explosive growth in recent years, with global transaction volumes jumping from $6.2 trillion in 2023 to $22 trillion in 2024. Coinbase and PayPal say their partnership will further propel the industry by making stablecoin payments as accessible and reliable as existing digital payment methods.
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