Coinbase and PayPal Boost Crypto Payments with Strategic Partnership
Coinbase, the largest publicly traded cryptocurrency exchange, has announced it will waive fees on transactions related to PayPal’s stablecoin, PYUSD, and allow users to redeem the token directly for U.S. dollars. This significant move is part of a joint effort between Coinbase and PayPal to increase the adoption of PYUSD, launched in 2023.
The integration enables merchants on PayPal’s network to settle transactions directly in PYUSD, bypassing traditional financial channels. Stablecoins, designed to maintain a constant value typically pegged 1:1 to the dollar, are increasingly used by crypto traders to move funds between tokens. Proponents argue they could facilitate instant payments.
“This partnership creates a powerful combination by connecting the consumer bases of both companies and bringing institutional access to the table,” said Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto, and digital currencies. The companies plan to collaborate on future initiatives to promote stablecoin adoption for payments and explore PYUSD’s potential on decentralized finance platforms.
Lauren Abendschein, global head of institutional sales at Coinbase, described the partnership as advancing the future of global payments and pushing stablecoin technology forward. Previously, Coinbase only offered zero-fee treatment for Circle’s USDC stablecoin, the second-largest by market capitalization.
The partnership comes as the U.S. Congress is poised to establish stablecoin regulations for the first time. Both the House of Representatives and Senate have advanced bills to create a regulatory framework, with the White House seeking final passage by August. The stablecoin market currently stands at over $238 billion, with PYUSD’s market cap at approximately $872 million.
This collaboration represents a significant step in mainstreaming stablecoins for payments and could potentially increase PYUSD’s market share through its integration with Coinbase’s platform.
