Coinbase Expands PYUSD Access by Partnering with PayPal to Support the Use of PayPal's Stablecoin

US-based crypto exchange Coinbase has formed a partnership with PayPal to support the use of PayPal's stablecoin, PYUSD. By Samuel Reed.

Crypto exchange Coinbase is forming a partnership with PayPal to support the use of the fintech giant's stablecoin, PYUSD. The move comes as the two firms look to expand the adoption of stablecoins in digital payments.

The partnership will see Coinbase and PayPal working together to provide greater access to PYUSD for both companies' customers. Specifically, Coinbase will offer zero-fee conversion rates between US dollars and PYUSD for both retail and institutional clients.

Additionally, Coinbase will use its infrastructure to support PYUSD for PayPal's largest merchant partners. The two firms will also cooperate on the use of PYUSD for onchain transactions.

"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," said Alex Chriss, President and CEO, PayPal.

Let's do this, @PayPal.We're teaming up to advance stablecoin payments.

We're going to be working together to provide greater access to PYUSD for both of our customers. We're starting with no-fee bank transfer to PYUSD. We'll also be supporting PYUSD for PayPal's largest merchant partners.

Coinbase and PayPal are both major players in the fintech space. Coinbase is one of the leading cryptocurrency exchanges in the world. It provides a platform for retail and institutional investors to buy, sell, and trade cryptocurrencies.

PayPal is a widely used online payment service that allows customers to send, receive, and withdraw money. The service is available in more than 200 countries and regions around the world.

Both companies have been working to expand the use of stablecoins in recent years. Stablecoins are cryptocurrencies that are pegged to the value of another asset, such as a fiat currency or commodity. They are designed to provide more price stability than other cryptocurrencies, which can be highly volatile.

Coinbase and PayPal's partnership is a significant development in the fast-growing market for cryptocurrencies and blockchain technology. The partnership could help to accelerate the adoption of stablecoins for everyday payments.

The two firms are also planning to apply for approval from the Commodity Futures Trading Commission (CFTC) to launch futures contracts for the XRP token.

According to a recent filing by Coinbase with the CFTC, the proposed product is a monthly, cash-settled and margined contract, which will be traded on the exchange under the symbol XRL. Each contract will be for 50 XRP, with a tick size of $0.05 and a minimum price increment of $0.10.

The filing adds that the futures contracts will be subject to the exchange's standard rules and regulations.

Coinbase and PayPal did not immediately respond to a request for comment.