By Hannah Lang
(Reuters) – Coinbase, the largest publicly traded cryptocurrency exchange, will waive fees for transactions related to PayPal’s Stablecoin, allowing companies to directly redeem their PayPal’s major milestone, US dollar tokens, as they double Crypto payments.
The move is part of a joint effort by Coinbase and Paypal to increase the adoption of Paypal’s Stablecoin, known as Pyusd, which was launched in 2023. PayPal says that integration with Coinbase allows sellers of its network to settle directly into Pyusd instead of traditional financial lines.
Stablecoins are a kind of cryptocurrency designed to maintain a constant value. It is usually a 1:1 dollar peg, commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and supporters like Paypal say they can be used to send payments instantly.
“This combination of connecting Paypal and Coinbase consumer base, bringing merchants to the table and allowing them to have access to (Coinbase) facilities on the table – I think it really creates a really, really powerful combination.”
The companies also plan to increase the adoption of stubcoin for payments and partner for future efforts to explore PYUSD use cases on decentralized finance platforms.
“This is a partnership in moving forward with the future of global payments, making stable coins mainstream and pushing this technology,” said Lauren Avendyshane, global head of institutional sales at Coinbase.
Coinbase previously provided the same zero FEE processing for Circle’s Stablecoin, USDC and market capitalization, number 2 Stablecoin.
“There is definitely a payment where people make the choice between PYUSD and USDC. We want to make sure that PYUSD is established as the best stubcoin for payment,” said Fernandez da Ponte.
Circle is also doubled for its use of Stablecoin for payments. On Monday, the company announced the launch of a circle payment network designed for cross-border payments and real-time payments for stables between financial institutions.
According to Crypto Data Provider Coingecko, Stablecoins has a market capitalization of over $238 billion. PayPal’s Stablecoin has a market capitalization of just around $872 million, but it will be able to gain market share through integration with Coinbase.
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