PayPal, Coinbase Expand Partnership to Boost PYUSD Stablecoin Adoption

PayPal Holdings, Inc. and Coinbase Global, Inc. have announced an expanded partnership aimed at increasing the adoption, distribution, and utilization of the PayPal USD (PYUSD) stablecoin. This collaboration is designed to provide value for consumers, enterprises, and institutions by leveraging digital currencies across various platforms and borders, ensuring the stability of regulated USD-denominated crypto-native assets.

Alex Chriss, President and CEO of PayPal, highlighted the long-standing collaboration between the two companies, which has enabled a seamless integration for PayPal users to fund crypto purchases on Coinbase. The deployment of PYUSD, combined with PayPal's payments expertise, has opened up new commerce applications. Chriss expressed excitement about driving innovative use cases for PYUSD with Coinbase and the broader cryptocurrency community, aiming to enhance the utility and adoption of digital currencies among developers, customers, and other users.

The partnership will grant Coinbase's millions of customers direct access to PYUSD, while also providing thousands of institutions already using crypto with increased utility through PYUSD. Key details of the collaboration include 1:1 PYUSD to USD conversions, allowing Coinbase users to buy, sell, and trade PYUSD without platform fees and redeem PYUSD 1:1 for US dollars directly on Coinbase platforms. Additionally, the two companies are committed to collaborating on various innovations to accelerate the adoption and utility of stablecoin-based solutions for moving or managing money globally, particularly in commerce. They also plan to explore new use cases for PYUSD in decentralized finance (DeFi) and onchain platforms.

Brian Armstrong, CEO of Coinbase, expressed enthusiasm about the partnership, noting that PayPal's extensive consumer and merchant accounts present an unprecedented opportunity to increase stablecoin adoption globally. This agreement builds on the previous collaboration between the two companies, announced in 2021, which enabled Coinbase users to fund purchases on Coinbase using their PayPal accounts and make withdrawals of fiat currency from Coinbase.

PayPal USD (PYUSD) is issued by Paxos Trust Company, a fully chartered limited purpose trust company licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PYUSD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, and PYUSD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.

PayPal has been revolutionizing commerce globally for over 25 years, creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. The company empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. Coinbase, on the other hand, is on a mission to increase economic freedom for more than 1 billion people by providing a trusted platform for engaging with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. Coinbase also supports builders who share the vision that onchain is the new online and advocates for responsible rules to make the benefits of crypto available around the world.