PayPal (PYPL) and Coinbase Global Inc. (COIN) Forge Alliance to Boost Mass Adoption of PayPal USD (PYUSD)

PayPal Holdings Inc. (NASDAQ: PYPL) and Coinbase Global Inc. (NASDAQ: COIN) have forged a strong alliance to boost the mass adoption of PayPal USD (PYUSD)

PayPal Holdings Inc (NASDAQ:PYPL) and Coinbase Global Inc (NASDAQ:COIN) have joined forces to expand the reach of PayPal USD (PYUSD), its U.S. dollar-backed stablecoin, to a broader audience worldwide. This initiative is designed to make $PYUSD more accessible to consumers, businesses, and institutions.

"We're incredibly excited to work with Brian Armstrong and the Coinbase team to create more seamless ways for Coinbase's users to access PYUSD and to collaborate on future use cases," said Jose Fernandez, EVP, Core Technologies and Credit at PayPal. "We're innovating and building the future of commerce using the latest technologies - from AI to blockchain."

This collaboration provides Coinbase users with the ability to purchase, sell, and convert PYUSD without incurring any platform-related fees. Coinbase users will be able to redeem PayPal USD (PYUSD) at a rate of exactly 1:1 using U.S. dollars.

The collaborating companies aim to advance PYUSD by developing its application in cross-border payment and commerce tools that utilize stablecoin-based money management systems.

Coinbase will integrate PYUSD into its custody platform and trading interface to provide seamless stablecoin services to its customers. This expansion of infrastructure is designed to leverage PayPal's existing 430 million customer base and broaden the scope of $PYUSD functionality in digital financial services.

"We're always looking for ways to provide our customers with more choice and efficient access to the crypto ecosystem," said Brian Armstrong, CEO of Coinbase. "This partnership with PayPal aligns perfectly with our vision to create a more open financial system."

Through its infrastructure systems, Coinbase will introduce stablecoin-based solutions to PayPal's merchant partners. The partnership between Coinbase and PayPal is also focused on developing new decentralized finance (DeFi) and on-chain implementations that will benefit PYUSD.

The collaboration will prioritize three key aspects: improving programmable payments, enhancing settlement speed, and expanding stablecoin transaction capabilities across global markets.

These companies are in the process of developing technology to enable the real-world implementation of stablecoins. The initiative supports the broader integration of digital assets and cryptocurrencies into mainstream financial services.

The financial institution Paxos Trust Company authorizes the issuance of PayPal USD. PYUSD receives full backing from U.S. dollar reserves, Treasury securities, and cash assets. PayPal and Venmo enable consumers to access stable digital currencies for their regulated digital currency transactions.

The integration of PYUSD into Coinbase's ecosystem will provide efficient exchange rates and low transaction fees for customers. It will also expand the use of stablecoins in DeFi protocols and other on-chain applications.

Coinbase and PayPal will collaborate to expand the application of PYUSD in payment systems, fostering the speed and efficiency of global digital financial services.

This partnership marks a significant step in expanding the adoption of stablecoins and digital assets, ultimately benefiting consumers and institutions worldwide.