Catenaa, Friday, April 25, 2025-PayPal and Coinbase have announced a strategic partnership aimed at driving wider adoption of PayPal’s stablecoin, PYUSD, by eliminating all trading fees on the token.
Effective immediately, users can buy, sell and trade PYUSD on Coinbase without incurring platform charges, and the token remains redeemable 1:1 for US dollars.
In a joint statement released Thursday, the companies said they also plan to explore use cases for PYUSD on decentralized finance platforms.
The move follows PayPal’s recent announcement offering a 3.7% annual yield for PYUSD held in PayPal and Venmo wallets, beginning summer 2025.
“For years, we’ve worked with Coinbase to create seamless crypto access for PayPal users,” said PayPal CEO Alex Chriss. “Now, we’re combining PYUSD with our payments capabilities to push for broader commerce utility.”
Launched in August 2023, PYUSD is built on Ethereum and expanded to Solana in 2024. PayPal has since partnered with Anchorage Digital and MoonPay to enhance the stablecoin’s ecosystem, enabling wider purchasing options and rewards.
As of Thursday, PYUSD’s market cap stands at $866 million with $24.3 million in daily trading volume, according to The Block.
It trails behind stablecoin giants Tether (USDT) and Circle (USDC), which account for over 90% of the global $228 billion stablecoin market.
Coinbase, one of the largest US crypto exchanges, recorded $439 billion in trading volume in Q4 2024.
The partnership signals a deepening push by mainstream fintech players to challenge legacy stablecoin dominance through fee-free trading and user incentives.
