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PayPal: Coinbase users now able to buy, sell PYUSD with no fees

AinvestThursday, Apr 24, 2025 9:02 am ET

1min read

Coinbase has announced a strategic partnership with PayPal to facilitate seamless stablecoin transactions, specifically focusing on PayPal's USD-pegged stablecoin, PYUSD. This collaboration aims to drive widespread adoption of stablecoins by simplifying access and reducing transaction costs for users.

As part of this initiative, Coinbase will offer zero-fee USD-PYUSD conversions for both retail and institutional customers. This move is expected to significantly enhance the usability of stablecoins, particularly for those who are already familiar with Coinbase's platform. By removing conversion fees, Coinbase and PayPal hope to attract more users to the stablecoin ecosystem.

The partnership also includes plans to expand support for stablecoins to PayPal's largest merchant partners, further promoting the adoption of faster and more efficient financial services. Additionally, the companies will explore new use cases for PYUSD on-chain, leveraging Coinbase's leading infrastructure platform.

The adoption of stablecoins for faster, low-cost payments is a core mission for Coinbase. Stablecoins have already shown significant growth, with transaction volumes surging by 250% from $6.2 trillion to $22 trillion between 2023 and 2024 [1]. The relationship with PayPal is set to take this payments revolution forward.

PayPal has also announced a rewards program for PYUSD holders, offering a 3.7% annual return starting in summer 2025. This program aims to boost native coin adoption among U.S. users by rewarding them for holding PYUSD. The returns will be paid monthly in PYUSD, with daily accrual [2].

This strategic partnership between Coinbase and PayPal is expected to have a substantial impact on the stablecoin market, making it easier for users to transact with stablecoins and incentivizing broader adoption. The competitive landscape in the stablecoin market is heating up, with other major fintech companies exploring their own stablecoin products [4].

References:
[1] https://www.coinbase.com/blog/coinbase-and-paypal-to-advance-stablecoin-payments
[2] https://www.tronweekly.com/paypal-introduces-3-7-return-on-pyusd/
[4] https://cryptoslate.com/paypal-shakes-up-stablecoin-market-with-3-7-interest-rewards-on-pyusd/

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