Coinbase and PayPal deepen ties with zero-fee PYUSD transfers
Coinbase waives PYUSD fees in PayPal partnership
Coinbase and PayPal have deepened their partnership with a bold move aimed at accelerating crypto adoption: eliminating all fees for conversions of the PayPal USD (PYUSD) stablecoin on the Coinbase platform.
The zero-fee initiative is designed to simplify onramps and offramps for digital assets, particularly stablecoins. The feature will allow Coinbase users to convert PYUSD without incurring any transaction costs, reinforcing PayPal’s broader push to mainstream stablecoin use for both consumers and merchants.
“This combination of being able to connect the consumer bases of PayPal and Coinbase... creates a really powerful combination,” said Jose Fernandez da Ponte, PayPal’s senior vice president for blockchain and digital currencies.
Strategic alliance for stablecoin growth
Coinbase’s waiver of fees follows a similar move last year with Circle’s USDC, reinforcing the company’s strategy to remove friction in digital finance. PayPal’s PYUSD, while still small in market capitalization at $866 million, has more than doubled since last April, showing strong growth.
PayPal sees this development as a pivotal step in enabling direct settlement for merchants. Transactions in PYUSD can bypass traditional banking rails, allowing near-instant settlements. The company is also exploring decentralized exchanges as a future frontier.
Lauren Abendschein, Coinbase’s global head of institutional sales, noted, “This partnership is all about advancing the future of global payments... and pushing stablecoins into the mainstream.”
What’s Next?
As the stablecoin market continues to grow — now valued at $236 billion — strategic collaborations like this one could help shift consumer habits and merchant operations toward blockchain-based solutions. Regulatory clarity and further integrations with DEXs may define the next chapter of this partnership.
We also reported earlier that Coinbase weighs U.S. bank charter amid easing crypto oversight.
