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), their U.S. dollar-backed stablecoin, across the globe. This initiative intends to make $PYUSD more usable to all segments of consumers, businesses, and institutions.
This new collaboration allows Coinbase users to purchase, sell, and convert PYUSD without facing platform-related fees. Coinbase users will redeem PayPal USD (PYUSD) at a rate of exactly 1:1 using U.S. dollars. The collaborating companies aim to push PYUSD forward by developing its use in cross-border payment and commerce tools that use stablecoin-based money management systems.
Coinbase Shares Stablecoin Infrastructure and Onchain Use Cases
Coinbase plans to establish PYUSD access through its custody platform and trading interface to deliver seamless stablecoin services to its customers. The infrastructure expansion aims to improve PayPal’s 430 million customer base and extend $PYUSD functionality in digital financial services. Coinbase will implement stablecoin-based solutions to PayPal’s merchant partners through its infrastructure systems.
The partnership between Coinbase and PayPal intends to develop fresh decentralized finance (DeFi) and on-chain implementations that will benefit PYUSD. The companies focus on three key aspects: improving programmable payments, settlement speed, and expanding stablecoin transaction capabilities across global markets. These companies are undergoing development to achieve real-world implementation of Stablecoins.
Regulatory-Backed Digital Dollar Support
The financial institution Paxos Trust Company authorizes the issuance of PayPal USD. PYUSD receives full backing from US dollar reserves, Treasury securities, and cash assets. PayPal and Venmo enable consumers to access stable digital currencies for their regulated digital currency transactions.
Coinbase and PayPal will work together to expand the application in payment systems, fostering the speed and efficiency of global digital financial services.
