Coinbase and PayPal are deepening their partnership, now offering zero-fee onramps and offramps for PYUSD on the largest U.S.-based exchange.
PayPal is doubling down on crypto payments with a strategic partnership push. On Thursday, April 24, Coinbase partnered with PayPal to offer zero-fee onramps and offramps for the PYUSD (PYUSD) stablecoin on its exchange.
PayPal explained that this partnership will enable merchants to settle debts directly in PYUSD without relying on traditional payment networks. Settlement in PYUSD is also instant, one of the key reasons PayPal has pursued this direction. At the same time, Coinbase gives PayPal access to its large user base.
“This combination of being able to connect the consumer bases of PayPal and Coinbase, bringing our merchants to the table, bringing [Coinbase’s] institutional access to the table — we think that it creates a really, really powerful combination,” Jose Fernandez da Ponte, PayPal’s senior vice president of blockchain, crypto and digital currencies.
PayPal looks into expanding to DEXs
PayPal and Coinbase are planning further partnerships aimed at making stablecoins and digital payments mainstream. At the same time, PayPal is exploring expansion into decentralized exchanges. This would allow users to use PYUSD for payments without intermediaries.
“This is a partnership that is all about advancing the future of global payments, taking stablecoins mainstream, pushing forward this technology,” Lauren Abendschein, global head of institutional sales at Coinbase.
In 2024, Coinbase started offering zero-fee onramps and offramps for Circle’s USDC stablecoin on its exchange. The move, they explained, was to grow the crypto industry by making it more attractive and accessible for new users.
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PYUSD is still a relatively small player in the stablecoin market, with the total stablecoin market cap at $236 billion. PayPal’s stablecoin has a market cap of only $866 million, but this figure more than doubled from April last year.
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