PayPal Holdings Inc. and Coinbase Global Inc. have expanded their partnership to accelerate the adoption of PayPal USD (PYUSD), a US dollar-backed stablecoin. The announcement, made on Thursday, highlights the companies’ strategic effort to integrate stablecoins into global payments and decentralized finance (DeFi) systems.
Under the new collaboration, Coinbase will support fee-free purchases of PYUSD and facilitate seamless 1:1 conversions to US dollars across its platforms. Both companies plan to explore new use cases in DeFi and on-chain systems, positioning PYUSD as a central tool for digital commerce and institutional crypto adoption.
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PayPal CEO Alex Chriss expressed enthusiasm about the partnership, stating, “We are excited to drive innovative use cases together, putting PYUSD at the center of future commerce experiences.” Coinbase CEO Brian Armstrong noted the potential reach of PayPal’s 430 million users to expand global stablecoin adoption.
This renewed partnership builds on their 2021 collaboration, which allowed Coinbase users to fund crypto purchases with PayPal and withdraw fiat. The new agreement emphasizes institutional and consumer access, DeFi participation, and blockchain-based payments.
PYUSD is issued by Paxos Trust Company and fully backed by US dollar reserves. It is available on both PayPal and Venmo platforms, aiming to enhance the global financial ecosystem through stable, regulated digital currencies.
