PayPal and Coinbase have announced an expansion of their partnership aimed at increasing the adoption, distribution, and utilisation of the PayPal USD (PYUSD) stablecoin.

The collaboration is designed to offer value to consumers, businesses, and institutions by enabling greater use of digital currencies across various platforms and borders, while maintaining the stability of regulated, USD-denominated crypto assets.

Alex Chriss, President and CEO of PayPal, commented on the development, saying,

“For years, we’ve worked with Coinbase to enable a best-in-class integration to provide a simple, familiar way for PayPal users to fund crypto purchases on Coinbase. Our objectives aligned further as we deployed PYUSD in combination with our payments expertise, enabling greater commerce applications.”

As part of the expanded partnership, Coinbase’s users will now have direct access to PYUSD, with the ability to buy, sell, and trade the stablecoin without platform fees.

Additionally, users will be able to redeem PYUSD 1:1 for US dollars on Coinbase platforms.

The two companies also plan to collaborate on a range of innovations to promote the adoption and utility of stablecoin-based solutions, particularly for moving or managing money globally, especially in the context of commerce.

Furthermore, the partnership includes an exploration of new use cases for PYUSD in decentralised finance (DeFi) and on-chain platforms.

Brian Armstrong, CEO of Coinbase, expressed enthusiasm about the collaboration, noting,

“We’re excited to be partnering with PayPal. Their more than 430 million consumer and merchant accounts offer an unprecedented opportunity to increase stablecoin adoption globally.”

This new agreement builds on the prior work between the two companies, which began in 2021.

That collaboration allowed Coinbase users to fund purchases on the platform directly using PayPal accounts and withdraw fiat currency from Coinbase.

Featured image credit: edited from freepik