Payments giant PayPal has expanded its alliance with digital currency exchange Coinbase to enhance the adoption of the PayPal USD (PYUSD) stablecoin.
This move is expected to grant Coinbase’s customer base direct access to PYUSD and provide “increased” utility for institutions engaging in cryptocurrency transactions.
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Coinbase has announced that its users will now be able to buy, sell, and trade PYUSD without incurring platform fees.
Furthermore, users can redeem PYUSD for US dollars on a one-to-one basis directly on Coinbase’s platforms.
This initiative is part of a strategy to accelerate the adoption and functionality of stablecoin-based solutions for global financial transactions.
It also includes exploring new use cases for PYUSD within the decentralised finance (DeFi) sector and onchain platforms.
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By GlobalDataThis expanded collaboration builds upon the previous agreement from 2021, which allowed Coinbase customers to use their PayPal accounts for swift funding of cryptocurrency purchases and fiat withdrawals.
PayPal CEO and president Alex Chriss stated: “For years, we’ve worked with Coinbase to enable a best-in-class integration to provide a simple, familiar way for PayPal users to fund crypto purchases on Coinbase. Our objectives aligned further as we deployed PYUSD in combination with our payments expertise enabling greater commerce applications.
“We are excited to drive new, exciting, and innovative use cases together with Coinbase and the entire cryptocurrency community, putting PYUSD at the center and driving further utility and adoption for digital currencies among developers, customers, and other users.”
Coinbase CEO Brian Armstrong said: “We’re excited to be partnering with PayPal. Their more than 430 million consumer and merchant accounts offer an unprecedented opportunity to increase stablecoin adoption globally.”
Earlier this month, PayPal partnered with TerraPay, a company specialising in global fund transfers, to provide real-time fund transfer capabilities to customers in the Middle East and Africa.
