Coinbase Cuts Fees on PayPal Stablecoin to Boost PYUSD Use

Coinbase has decided to stop charging fees when people buy PayPal USD (PYUSD) on its site. This step is part of a big plan to make stablecoins a normal part of payments worldwide. It helps both regular people and big companies try out payments on the blockchain.

In a blog post shared on Thursday, Coinbase said it wants to speed up how many people use, share, and work with PYUSD. This stablecoin, tied to the U.S. dollar, hasn‘t grown much since it started in 2023. It’s worth about $730 million, which is tiny—less than 1% of all stablecoins. Big names like Tether‘s USDT, with 66.5%, and Circle’s USDC, with 28.3%, lead the pack, says CryptoQuant.

PayPal, who made PYUSD, is teaming up with Coinbase to create new ways to move money around the world using stablecoins. Theyre looking at how PYUSD can help with things like decentralized finance (DeFi) and other online platforms that use blockchain.

PayPal‘s boss, Alex Chriss, said, “We’re thrilled to team up with Coinbase and the crypto world to find fresh, fun, and smart ways to use PYUSD. We want it to be a big deal for digital money, helping developers, customers, and everyone else.”

The Stablecoin Race Intensifies

The fight to be the best stablecoin is getting hotter. People think the U.S. government will soon make new rules about crypto, especially stablecoins. In the past, stablecoins were mostly for trading or borrowing in crypto. Now, big companies like them because they send money across countries fast and cheaply without old-school banks.

Circle, the group behind USDC, just started a new system for banks and money transfers. This hits PayPal right where it makes its money—payments. Also, Ripple, known for XRP, jumped in with its own stablecoin called Ripple USD (RLUSD), making things even busier.

Coinbase‘s leader, Brian Armstrong, pointed out that PayPal has over 430 million users and businesses worldwide. That’s a huge chance to get more people using stablecoins. Coinbase has always wanted crypto to power the worlds money system. Stablecoins help them make money in ways other than just trading. They split USDC profits 50-50 with Circle, and Armstrong said they dream of making USDC the top stablecoin.

Coinbases Push for Crypto Payments Integration

Coinbase is working hard to mix crypto payments into everything it does. They built their own network called Base, which works with Ethereum apps. Their plan is to get crypto payments everywhere by working with companies like Stripe and Yellow Card and offering more stablecoin options to trade.

Besides dropping fees for PYUSD, Coinbase now lets users turn PYUSD straight into U.S. dollars on its site. Before, people had to send it to PayPal, Venmo, or Paxos to cash out. This change makes PYUSD simpler to use every day.

At the same time, PayPal is giving a 3.7% yearly reward of PYUSD if you keep it with them, paid in more PYUSD. They hope this gets more people to hold and spend it.

The stablecoin world keeps changing fast. Coinbase cutting fees on PYUSD and making it easy to cash out shows how big stablecoins are getting in money matters. This could help PYUSD grow and stand up to the other big stablecoins out there.