PayPal and Coinbase Expand Partnership to Boost PYUSD Adoption
On Thursday, American payment company PayPal and cryptocurrency exchange Coinbase announced an expansion of their partnership to increase the adoption, circulation, and application of the PayPal USD (PYUSD) stablecoin.
According to a press release, this collaboration will enable millions of Coinbase customers to directly access PYUSD, while also enhancing the utility of PYUSD for thousands of institutions already using cryptocurrencies.
Details of the partnership include: allowing Coinbase users to buy, sell, and trade PYUSD on the platform without transaction fees, and enabling direct 1:1 exchanges to USD; collaborating to develop innovative solutions related to stablecoins; and jointly exploring potential application scenarios for PYUSD in decentralized finance (DeFi) and on-chain platforms.
PayPal and Coinbase began their partnership in 2021, which includes allowing Coinbase users to fund transactions directly via PayPal accounts and services for withdrawing fiat currency.
According to a previous report by Zombit, PYUSD is issued in collaboration between PayPal and stablecoin issuer Paxos Trust Company, with its value fully backed by USD deposits, short-term U.S. government bonds, and cash equivalents, allowing for a 1:1 exchange for USD. Data from DefiLlama shows that PYUSD currently has a market capitalization of approximately $866 million, which still represents a significant gap compared to the market-leading USDT (approximately $146.1 billion) and the second-ranked USDC (approximately $61.9 billion).
Related reports: “PayPal Plans to Offer 3.7% Balance Rewards to PYUSD Holders to Promote Stablecoin Adoption,” “PayPal’s Stablecoin Strategy: Integrating PYUSD with the DeFi Ecosystem as a Top Alternative to USDT and USDC,” “PayPal and Venmo Support Ethereum Name Service (ENS) to Simplify Cryptocurrency Payments.”