The largest exchange of cryptocurrencies listed on the stock exchange, Coinbase, has decided to eliminate the fees on transactions made with PYUSD, the stablecoin launched by PayPal.
Users will also be able to convert PYUSD directly into US dollars, making the payment process smoother and more accessible.
This move represents a significant step for PayPal, which aims to strengthen its presence in the cryptocurrency and digital payments sector, focusing on a stablecoin that can be used efficiently and securely.
Coinbase opens the doors to PayPal’s PYUSD stablecoin: zero fees and direct integration
Stablecoins are cryptocurrencies designed to maintain a stable value, usually pegged to the US dollar with a 1:1 ratio.
Used primarily to facilitate exchanges between tokens, they are becoming increasingly popular also as a means of payment. In this context, PYUSD presents itself as an innovative solution, supported by two giants of the fintech sector.
According to Jose Fernandez da Ponte, senior vice president of PayPal for blockchain, cryptocurrencies and digital currencies, the collaboration with Coinbase represents a “truly powerful combination”.
Which combines the user base of PayPal, the network of merchants, and the institutional access of Coinbase. The goal is clear: bring PYUSD to the center of digital payments.
Until recently, Coinbase offered zero-fee treatment only for USDC, the stablecoin of Circle, second in market capitalization.
The extension of this advantage also to PYUSD represents an important recognition for PayPal’s stablecoin, which aims to gain ground in a highly competitive market.
“We want to ensure that we establish PYUSD as the best stablecoin for payments,” stated Fernandez da Ponte, emphasizing PayPal’s intention to position itself as a leader in the sector.
The partnership between Coinbase and PayPal is not limited to the elimination of fees. The two companies have announced their intention to collaborate on future projects as well.
Specifically with the goal of expanding the adoption of stablecoins in payments and exploring new use cases for PYUSD within decentralized finance (DeFi).
DeFi allows users to conduct transactions directly on a blockchain network, without the need for intermediaries. The integration of PYUSD into this ecosystem could pave the way for new opportunities for consumers and financial institutions.
The regulatory context: Congress towards a law on stablecoins
This strategic alliance comes at a time when the United States Congress seems ready to approve a law regulating stablecoins.
Both the House of Representatives and the Senate have put forward proposals to create a clear regulatory framework, and the Casa Bianca has expressed the intention to see a definitive bill approved by August.
A more defined regulatory environment could further encourage the adoption of stablecoins, offering greater security to investors and users.
In this scenario, the partnership between Coinbase and PayPal fits as a forward-looking initiative, ready to leverage the legislative change to consolidate its position in the market.
The current president Donald Trump has shown a strong interest in the world of cryptocurrencies, seeking to radically reform U.S. policies on the matter.
After receiving broad support from the sector during his election campaign, Trump appointed crypto-friendly figures to key agencies such as the Securities and Exchange Commission.
Recently, he signed an executive order for the creation of a strategic cryptocurrency reserve, demonstrating the intention to integrate digital currencies into the national economic strategy.
Furthermore, the Trump Media & Technology Group, of which the president holds the majority, has announced an agreement for the launch of retail investment products, including cryptocurrencies, thus expanding its presence in the financial sector.
A growing market and new opportunities
According to the data provided by CoinGecko, the overall market capitalization of stablecoins exceeds 238 billion dollars.
Despite PYUSD currently having a relatively modest capitalization of 872 million dollars, the integration with Coinbase could represent a catalyst for significant growth.
In the meantime, Circle also continues to invest in the sector, with the recent launch of the Circle Payments network, designed to facilitate cross-border payments and real-time settlement between financial institutions.
The collaboration between Coinbase and PayPal represents much more than a simple commercial agreement: it is a strong signal of the evolution taking place in the world of digital payments.
With the elimination of fees on PYUSD, integration into DeFi, and support from a regulatory context that is being defined, stablecoins are getting closer and closer to their goal of becoming a global and mainstream payment instrument.
As Lauren Abendschein, global head of institutional sales at Coinbase, emphasized, this partnership aims to “advance the future of global payments”.
And with the support of the Trump administration and the growing interest from institutions and consumers, the future of stablecoins seems more promising than ever.