PayPal and Coinbase have announced an expanded partnership to accelerate the adoption and real-world utility of PayPal USD (PYUSD), according to an April 24 press release.
The initiative marks a deeper integration between two of the largest names in payments and crypto, as they collaborate to build infrastructure for stablecoin-driven commerce.
Payments and DeFi innovation
The companies announced that Coinbase users can now purchase PYUSD without fees and redeem it 1:1 for US dollars directly through the Coinbase platforms.
The goal is to streamline access to PYUSD for both retail and institutional users while exploring broader use cases in commerce and DeFi.
The partnership builds on the firms’ initial 2021 collaboration that allowed Coinbase users to link their PayPal accounts for direct crypto purchases and fiat withdrawals. The new phase of the alliance goes further by embedding PYUSD as a core asset across both companies’ ecosystems.
As part of the agreement, PayPal and Coinbase will collaborate on cross-border payment solutions and financial tools designed to help consumers and businesses manage money more quickly and cost-effectively.
According to both firms, PYUSD, as a regulated and fully-backed stablecoin, is positioned to serve as the digital bridge currency across jurisdictions.
In addition, both firms plan to explore DeFi integrations, leveraging Coinbase’s onchain infrastructure to test PYUSD in decentralized environments. This includes support for developers building apps that integrate stablecoins into automated financial services and Web3 platforms.
Strategic bet on stablecoins
The move comes amid growing interest in regulated stablecoins from both fintech companies and traditional financial institutions.
The expansion comes amid a surge in stablecoin adoption. In 2024, the total supply of stablecoins grew by 63%, reaching $225 billion, with active stablecoin wallets increasing by 53% to over 30 million.
Stablecoins facilitated $35 trillion in total transfers over the past year, surpassing the combined volume of Visa and Mastercard transactions in 2024
By pairing PayPal’s global reach, which spans over 430 million accounts, with Coinbase’s crypto-native infrastructure, the companies aim to push PYUSD adoption beyond trading into everyday payments.
The expanded partnership signals a strategic alignment around the role of stablecoins in the future of digital money and positions PYUSD as a leading contender among fiat-pegged tokens.
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