Coinbase waives fees on PayPal stablecoin, boosting crypto payment push

• Published On: 25 April 2025 at 06:10

Coinbase, the largest publicly traded cryptocurrency exchange, is reducing transaction fees for trades involving PayPal's stablecoin, PYUSD, and will now allow users to redeem the token directly for US dollars, marking a significant step forward in PayPal's efforts to promote crypto-based payments.

The move is part of Coinbase and PayPal's growing collaboration to speed the adoption of PYUSD, which will launch in 2023. With this interface, PayPal merchants may now settle transactions directly in PYUSD, bypassing traditional payment methods.

"This is a powerful combination," stated Jose Fernandez da Ponte, PayPal's senior vice president of blockchain and digital currency. "It connects the consumer bases of PayPal and Coinbase, and merges merchant capabilities with Coinbase's institutional access."

Stablecoins, or cryptocurrencies linked to a constant value, most commonly the US dollar, are widely utilised in the digital asset ecosystem to facilitate fast payments and trade. PayPal's coin has a small market capitalisation of $872 million, despite the fact that there are approximately $238 billion in stablecoins circulating globally. However, the Coinbase integration is likely to provide it a stronger position in the competitive arena.

Coinbase has previously only supported zero-fee transactions for Circle's USDC, the second-largest stablecoin by market capitalisation. PYUSD is now being treated similarly, and companies are presenting it as a prominent payment alternative.

"We want to make sure PYUSD is seen as the best stablecoin for payments," Fernandez da Ponte stated.

Coinbase and PayPal also intend to investigate additional use cases for PYUSD across decentralised finance platforms, with the goal of increasing mainstream acceptance.

The agreement comes as the United States draws closer to regulating stablecoins, with Congress draughting legislation to establish formal guidelines. The White House has called for a final measure by August, highlighting Washington's rising concern on cryptocurrency regulation.

Tagged: Coinbase.