PayPal, Inc and Coinbase Global, Inc have furthered their partnership to deploy PayPal USD (PYUSD), PayPal’s stablecoin, in the crypto ecosystem. The collaboration is designed to enhance the usefulness of PYUSD. Additionally, it has plans to bring PYUSD to different decentralized finance (DeFi) platforms and payment chains. This joint endeavor seeks to promote adoption of digital currencies in daily commerce.

The collaboration will enable consumers to make PYUSD purchases, sales, and trades through Coinbase without payment fees. PayPal USD (PYUSD) is an Ethereum-based stablecoin pegged 1:1 to the U.S. dollar. Users can trade PYUSD for U.S. dollars at par directly on Coinbase’s platforms.

PayPal and Coinbase’s joint commercial progression is designed to accelerate the adoption of digital currencies for everyday transactions and payments. The partnership furthers Coinbase’s able-bodied efforts to bring cryptocurrency payments into the fold of its business.

Strategic Integration and Utility

In blockchain-based finance, PayPal and Coinbase primarily want to develop new stablecoin use cases. Their approach is clearly meant to expand PYUSD utility and adoption within the broader crypto marketplace.

This partnership fosters innovation in stablecoin-based solutions. PayPal and Coinbase are working on bringing PYUSD into DeFi platforms and payment systems. Their mission is to increase its adoption across the cryptocurrency industry.

PayPal offers a 3.7% yield for PYUSD held in PayPal and Venmo wallets, which will be available starting in 2025. This incentive will likely serve to further drive adoption and usage of PYUSD among users.

Coinbase's Perspective

The integration of PYUSD fits Coinbase’s larger strategy of embedding cryptocurrency payments into its platform.

430 million account holders will be crucial in fueling the global adoption of the stablecoin. - Coinbase CEO Brian Armstrong

Future Implications

Overall, the new collaboration between PayPal and Coinbase truly shows that we are getting closer to the mainstream adoption of digital currencies. The partnership marries PayPal’s global reach with Coinbase’s deep experience in digital currency. Paired with practical use cases, they create a recipe for wide adoption of PYUSD.

Users will benefit from zero fees for both receiving and sending PYUSD on Coinbase — an addition expected to increase adoption among users. The 3.7% annual yield provided on PayPal and Venmo wallets will make it even more attractive for users to hold the new digital dollar, PYUSD.