PayPal and Coinbase have teamed up to boost stablecoin innovation.
Takeaway Points
- PayPal and Coinbase team up.
- The aim is to boost stablecoin innovation.
- Coinbase users will now be able to buy, sell, and trade PYUSD with no platform fees.
PayPal USD
PayPal Holdings, Inc., said on Thursday that it has expanded its partnership with Coinbase Global, Inc., to increase the adoption, distribution, and utilization of the PayPal USD (PYUSD) stablecoin. This collaboration will provide value for consumers, enterprises, and institutions as they continue to utilize digital currencies across platforms and borders with the stability of regulated USD-denominated crypto-native assets.
Alex Chriss, President and CEO, PayPal, remarked, “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.”
Brian Armstrong, CEO, Coinbase, commented, “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.”
The Partnership
PayPal said that this partnership will give Coinbase’s customers direct access to PYUSD and also enable institutions already using crypto to increase utility with PYUSD.
According to the report, Coinbase users will now be able to buy, sell, and trade PYUSD with no platform fees while also being able to redeem PYUSD 1:1 for US dollars directly on Coinbase platforms.
The two companies agree to explore new use cases for PYUSD in DeFi and on-chain platforms.
About PayPal USD (PYUSD)
PayPal USD is issued by Paxos Trust Company, a fully chartered limited-purpose trust company. Paxos is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD.
About PayPal
PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.
About Coinbase
Crypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom for more than 1 billion people. They’re updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers.
They also provide critical infrastructure for on-chain activity and support builders who share our vision that on-chain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.
