24-4-2025 – PayPal and Coinbase have forged a strategic alliance, announced on Thursday, to eliminate trading fees for the stablecoin, aiming to accelerate its adoption across digital finance. This partnership enables users to buy, sell, and trade PYUSD on Coinbase’s platform without incurring fees, while also offering a seamless 1:1 redemption for USD directly on the exchange. The collaboration is poised to explore innovative applications for PYUSD within decentralised finance (DeFi) ecosystems, signalling a deeper integration of stablecoins into emerging financial frameworks.
Alex Chriss, PayPal’s President and CEO, underscored the synergy driving this initiative. “Our longstanding collaboration with Coinbase has prioritised seamless integration, empowering PayPal users to effortlessly fund crypto transactions. With PYUSD, we’ve aligned our payments expertise with Coinbase’s infrastructure to unlock broader commercial possibilities,” he said. This partnership builds on years of cooperation, including PayPal’s 2013 acquisition of Venmo’s developer for $800 million, which integrated the mobile payments app into its ecosystem.
Since its debut on the Ethereum blockchain in August 2023, PYUSD has been at the heart of PayPal’s push to carve a niche in the competitive stablecoin market. The company has pursued aggressive expansion, notably integrating PYUSD onto the Solana blockchain in May 2024, partnering with crypto custodian Anchorage Digital to launch a stablecoin rewards programme, and collaborating with MoonPay to enable PYUSD purchases through diverse payment methods. Further bolstering its appeal, PayPal announced a 379 annual yield for PYUSD holdings in PayPal and Venmo wallets, set to commence in summer 2025.
With a market capitalisation of $866 million and $24.3 million in trading volume over the past 24 hours, as reported by The Block’s PYUSD price page, PYUSD is steadily gaining traction. Yet, it faces formidable rivals in Tether’s USDT and Circle’s USDC, which command $146 billion and $62 billion, respectively, of the $228 billion stablecoin market, according to The Block’s Data Dashboard as of April 24.
