PayPal and Coinbase announced a partnership on Thursday to eliminate trading fees for PayPal USD (PYUSD), aiming to increase its adoption. Users can now trade PYUSD on Coinbase without platform fees and redeem it 1:1 for USD directly on the exchange.
The companies are also exploring new PYUSD applications in decentralized finance (DeFi). This collaboration follows PayPal's announcement of a 3.7% annual yield for PYUSD holdings in PayPal or Venmo wallets, starting in the summer of 2025.
Since its launch in August 2023, PayPal has been actively promoting PYUSD adoption. As of today, PYUSD has a market capitalization of $866 million and a 24-hour trading volume of $24.3 million.
Coinbase, a major U.S. cryptocurrency exchange, recorded $439 billion in total trading volume in the fourth quarter of 2024. The partnership seeks to enhance PYUSD's competitiveness against stablecoin leaders like Tether's USDT and Circle's USDC.