PayPal and Coinbase have strengthened their partnership to increase the adoption and utility of PayPal USD (PYUSD). This collaboration aims to integrate stablecoin-driven commerce into both companies’ ecosystems and streamline access to PYUSD for retail and institutional users. The two firms will also explore cross-border payment solutions and DeFi integrations, leveraging Coinbase’s onchain infrastructure to test PYUSD in decentralized environments.
PYUSD, a regulated and fully-backed stablecoin, is positioned to serve as a digital bridge currency across jurisdictions. This strategic move comes amid a surge in stablecoin adoption, with the total supply of stablecoins growing by 63% in 2024 to $225 billion. Stablecoins facilitated $35 trillion in total transfers over the past year, surpassing the combined volume of Visa and Mastercard transactions in 2024.
By combining PayPal’s global reach of over 430 million accounts with Coinbase’s crypto-native infrastructure, the partnership aims to push PYUSD adoption beyond trading into everyday payments. This expanded collaboration highlights a strategic alignment around the role of stablecoins in the future of digital money, positioning PYUSD as a leading contender among fiat-pegged tokens.
Overall, the partnership between PayPal and Coinbase signifies a deeper integration between two of the largest names in payments and crypto. The goal is to accelerate the adoption and real-world utility of PYUSD by building infrastructure for stablecoin-driven commerce and exploring broader use cases in DeFi. This strategic bet on stablecoins comes amid growing interest in regulated stablecoins from fintech companies and traditional financial institutions.
In addition to allowing Coinbase users to purchase PYUSD without fees and redeem it 1:1 for US dollars directly through the Coinbase platforms, PayPal and Coinbase will collaborate on cross-border payment solutions and financial tools to help consumers and businesses manage money more efficiently. The firms plan to further explore DeFi integrations, supporting developers building apps that integrate stablecoins into automated financial services and Web3 platforms.
The expanded partnership between PayPal and Coinbase is a significant step towards mainstream adoption of stablecoins and the integration of crypto payments into everyday transactions. By fostering a seamless experience for users to access and utilize PYUSD, the collaboration aims to drive the evolution of digital money and position PYUSD as a key player in the stablecoin market. With the continued growth of stablecoin adoption, this partnership marks an important milestone in the convergence of traditional finance and crypto ecosystems.
