Jose Fernandez da Ponte, PayPal’s senior vice president for blockchain, crypto, and digital currencies, said linking PayPal’s and Coinbase’s vast customer networks—along with PayPal’s merchants and Coinbase’s institutional reach—creates “an incredibly powerful combination.”
Coinbase drops fees on PayPal’s PYUSD
Source Cryptopolitan
Coinbase, the largest publicly traded cryptocurrency exchange, announced today that it will waive transaction fees for PayPal PYUSD transactions on the trading platform as part of a strategic partnership to promote the use of stablecoins in global payment systems.
This partnership also brings in the feature to redeem PYUSD into U.S. dollars, enhancing its utility in everyday transactions.
Launched in 2023, PYUSD is a dollar-pegged stablecoin created by PayPal and Paxos.
Moreover, merchants on its network will now be able to settle directly in PYUSD rather than using conventional financial rails thanks to the integration with Coinbase, according to PayPal.
PayPal and Coinbase team up to push stablecoins from trading tool to mainstream payment rail
Cryptocurrency investors have widely adopted stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg. They use it to move funds between tokens.
In addition, stablecoins’ use has grown dramatically in recent years, and proponents like PayPal asserted that they could be used to send money instantly.
Furthermore, the two businesses planned to work together on upcoming projects to increase the usage of stablecoins for payments and look into PYUSD’s possible uses on decentralized finance platforms, which allow users to transact directly on a blockchain network without the need for middlemen.
A global head of institutional sales at Coinbase, Lauren Abendschein, also elaborated on the collaboration, stating that the goal of that union was to take stablecoins mainstream, advance that technology, and improve the future of international payments.
Coinbase had previously only offered Circle’s stablecoin, USDC, which came in second in market capitalization, the same zero-fee treatment.
Following this, Fernandez da Ponte said they wanted to ensure that PYUSD was the most popular stablecoin for payments because, in some payment scenarios, people will surely have to choose between PYUSD and USDC.
Circle expands stablecoin use as U.S. lawmakers push for regulations
Circle has increased the number of payments made with its stablecoin. The company recently announced the launch of its Circle Payments network, designed to help financial institutions settle stablecoins in real-time and make cross-border payments.
According to an analysis from CoinGecko, stablecoins have a market capitalization of approximately $239 billion. Although PayPal’s stablecoin only has a market value of $872 million, its integration with Coinbase could help it increase its market share.
The timing of the collaboration coincides with mounting momentum in Congress to establish America’s first stablecoin rulebook. Both the House and Senate have moved versions of a comprehensive framework forward, and the White House has signaled it wants a finished bill on the President’s desk by August.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
AUD/USD: Current price action is likely the early stages of a recovery – UOB GroupAustralian Dollar (AUD) is likely to trade in a sideways range between 0.6220 and 0.6290. In the longer run, current price action is likely the early stages of a recovery phase that could potentially reach 0.6350, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Australian Dollar (AUD) is likely to trade in a sideways range between 0.6220 and 0.6290. In the longer run, current price action is likely the early stages of a recovery phase that could potentially reach 0.6350, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
SHIB price targets diverge as investors weigh Shibarium L3 upgrades, burn-rate surges, and altcoin market sentiment. Forecasts range from a conservative $0.000012 to a parabolic $0.00030.
Ethereum price started a downside correction below the $1,780 level. ETH is now consolidating near the $1,800 zone and might aim for a move above $1,820.
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from the vicinity of the $3,265-3,260 pivotal support and attracts fresh sellers during the Asian session on Tuesday.
EUR/USD ticks lower despite uncertainty over US-China tradeEUR/USD edges lower to near 1.1400 during European trading hours on Tuesday. The major currency pair ticks lower as the US Dollar (USD) steadies, but remains broadly on edge amid escalating uncertainty about the trade outlook between the United States (US) and China.
EUR/USD edges lower to near 1.1400 during European trading hours on Tuesday. The major currency pair ticks lower as the US Dollar (USD) steadies, but remains broadly on edge amid escalating uncertainty about the trade outlook between the United States (US) and China.
