PayPal Holdings, Inc. and Coinbase Global, Inc. have announced an expanded collaboration to accelerate the adoption of PayPal USD (PYUSD), a regulated USD-backed stablecoin. This strategic partnership enables seamless PYUSD transactions while exploring new payment solutions across crypto and traditional finance ecosystems.
Key Partnership Benefits
- Zero-Fee PYUSD Transactions: Coinbase users can now buy, sell, and trade PYUSD without platform fees, with 1:1 USD redemption guarantees.
- Enhanced Payment Solutions: Joint development of stablecoin-based commercial applications for global money movement.
- DeFi Integration: Exploration of PYUSD utility in decentralized finance (DeFi) platforms and onchain ecosystems.
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Leadership Perspectives
Alex Chriss, PayPal President & CEO:
"Combining PayPal's payments infrastructure with Coinbase's crypto expertise unlocks groundbreaking use cases for PYUSD. We're committed to driving mainstream adoption of digital currencies."
Brian Armstrong, Coinbase CEO:
"With PayPal's 430M+ user network, this partnership creates unparalleled opportunities to advance stablecoin utility worldwide."
Technical Assurance
PYUSD is issued by Paxos Trust Company, a NYDFS-regulated entity, with reserves fully backed by:
- U.S. dollar deposits
- Treasury securities
- Cash equivalents
FAQ Section
Q: How does PYUSD differ from other stablecoins?
A: PYUSD combines PayPal's regulatory compliance with Coinbase's crypto infrastructure, offering institutional-grade stability with consumer accessibility.
Q: Can merchants accept PYUSD payments?
A: Yes, the partnership focuses on developing commerce solutions for businesses to process stablecoin transactions.
Q: What makes this collaboration unique?
A: It bridges traditional finance (PayPal) and crypto-native platforms (Coinbase), creating seamless fiat-to-crypto pathways.
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Future Roadmap
The companies plan to:
- Develop cross-border payment corridors
- Create merchant adoption tools
- Build regulatory-compliant DeFi integrations
This expanded partnership builds upon their 2021 integration that enabled PayPal-funded Coinbase transactions.