Coinbase has announced an expanded partnership with PayPal to focus on increasing the adoption and utility of PayPal USD (PYUSD), a stablecoin backed by the U.S. dollar.
As part of the updated partnership, Coinbase will now allow users to buy, sell, and trade PYUSD without fees. Additionally, PYUSD holders will be able to redeem the stablecoin 1:1 for U.S. dollars directly on Coinbase.
The introduction of zero-fee conversions seeks to simplify transactions for consumers and businesses, providing easy access to digital currency markets. This move is particularly important for both novice crypto users and larger institutional clients who are increasingly looking for ways to incorporate stablecoins into their operations.
Per Paypal’s blog post, Brian Armstrong, CEO of Coinbase, expressed his enthusiasm about the potential of the partnership, noting that PayPal’s extensive customer base of over 430 million users presents a unique opportunity to drive stablecoin adoption.
Expanding the Reach of Stablecoins in Commerce
One of the core goals of the partnership is to use PYUSD to facilitate payments without relying on traditional payment networks. PayPal plans to allow merchants to settle debts and complete transactions directly using PYUSD.
This feature will streamline international transactions, making them faster and more cost-effective. Settlement in PYUSD will also be instantaneous, a key factor driving PayPal’s interest in this stablecoin technology.
Push to Integrate Crypto Payments
Elsewhere, per CNBC, Coinbase is ramping up its efforts to expand crypto payments and solidify Base as the leading platform for Ethereum-compatible applications. CEO Brian Armstrong emphasized the company’s rapid push to integrate crypto payments across its entire suite of products, believing this will become a significant revenue stream in the long run.
He also expressed strong confidence in Base, Coinbase’s self-built network, touting it as the ideal platform for startups to develop on-chain solutions.
Additionally, Armstrong highlighted the company’s strategy to foster stablecoin growth, aiming to form more global and local partnerships with companies like Stripe and Yellow Card to drive broader adoption.
Ongoing Legal Challenges for Coinbase
As all this goes on, Coinbase has also been facing some legal challenges. The Oregon Department of Justice has recently filed a lawsuit against Coinbase, alleging that the exchange offers certain cryptocurrencies, including XRP, as unregistered securities.
This legal issue could have potential consequences for Coinbase’s operations, though the company has yet to comment in detail on the ongoing case. Tyler Winklevoss, co-founder of the crypto exchange Gemini, has criticized the actions taken by Oregon’s Attorney General, calling them detrimental to the broader crypto market.
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