Hassan Maishera
TL;DR
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Coinbase will offer users free conversion between U.S. dollars and PayPal's PYUSD stablecoin.
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The crypto exchange intends to expand infrastructure support for stablecoin payments to PayPal's largest merchant partners.
Coinbase Launches Free Conversion to PYUSD
Coinbase, one of the leading cryptocurrency exchanges in the world, announced on Thursday that it has launched free conversions between PayPal’s dollar-pegged stablecoin, PYUSD, and the U.S. currency. This latest development comes as Coinbase looks to accelerate the shift toward on-chain payments.
This feature is open to both retail and institutional customers and is part of a collaboration with PayPal aimed at promoting the PYUSD stablecoin as a payment currency. Coinbase will also use its crypto exchange to offer PYUSD to PayPal’s extensive network of merchant partners, which could ease the use of stablecoins in everyday transactions.
Stablecoins have become a key part of the crypto space as they provide a faster and cheaper alternative to legacy payment systems. They are also gaining popularity as remittance currencies. According to Standard Chartered, the stablecoin sector is expected to grow to $2 trillion by 2028, up from its current value of $220 billion.
Tether (USDT) remains the leading stablecoin, with a market value of over $140 billion. PayPal’s PYUSD is still behind, with a market cap of $860 billion. PayPal recently launched a 3.7% annual yield on PYUSD for U.S. token holders to increase its market share.
