Coinbase has announced that it will waive transaction fees for PayPal's PYUSD stablecoin. This move is part of a collaboration between the two companies aimed at increasing the adoption of the stablecoin.
Partnership Between Coinbase and PayPal
Coinbase and PayPal have unveiled a partnership aimed at enhancing the use of PYUSD, a dollar-pegged stablecoin launched by PayPal in 2023. Through this integration, merchants on PayPal's network will be able to settle transactions in PYUSD, bypassing traditional payment rails.
"This partnership brings together the consumer reach of PayPal and the institutional access of Coinbase," said Jose Fernandez da Ponte, PayPal's head of blockchain and digital currencies. "It creates a powerful combination to move stablecoin payments into the mainstream."
PYUSD Offer Details
As part of this offering, PayPal will also provide U.S. users with a 3.7% annual return on its dollar-backed stablecoin, which aims to enhance its presence in the digital asset marketplace. Currently, PYUSD holds a market cap of approximately $868 million, while Tether (USDT) stands at $143 billion.
"People will choose between PYUSD and USDC for different use cases," Fernandez da Ponte added. "We want PYUSD to be the preferred stablecoin for payments."
Stablecoin Regulation in the US
The announcement comes amid increasing momentum in Washington for stablecoin regulation. Both the House and Senate have advanced legislation to establish a regulatory framework, and the White House has expressed a desire to have a bill signed into law by August. Furthermore, President Donald Trump has adopted a more supportive stance toward digital assets, including appointing crypto-friendly regulators.
The partnership between Coinbase and PayPal may enhance the use of PYUSD as a stablecoin while the regulatory landscape for stablecoins continues to evolve.
