In a move that can change the panorama of digital payments, Coinbase, the largest cryptocurrency Exchange cited in the stock market, and PayPal, announced on Thursday, April 24th, announced the expansion of its strategic alliance.
The main purpose of this collaboration is to increase the adoption and usefulness of PayPal USD (PYUSD), a PayPal Stablocoin.
The association, revealed through its official statement, includes measures to promote the use of PYUSD. Some of the most notable initiatives are the elimination of fees for trading with this stubcoin in exchange and the possibility. Users will redeem Pyusd directly in USD at a 1:1 percentage. This step aims to make Stablecoins operations more accessible and economical to consumers and institutions.
Launched by PayPal in 2023, PayPal USD is a stubcoin backed by US dollar deposits, US Treasury bonds and cash designed to maintain a stable value of $1.
According to a press release, the collaboration not only increases the distribution of PYUSD, but Explore new use cases within the scope of distributed finances (defi) Blockchain-based platforms can open the door to innovative applications in global trade.
Coinbase CEO Brian Armstrong expressed his enthusiasm for the alliance, highlighting the possibility that more than 430 million PayPal users and merchants could accelerate the global adoption of Stablcoins.
“We are thrilled to work with PayPal, and its user base offers an unprecedented opportunity to expand the use of Stablecoins around the world,” Armstrong said. PayPal President and CEO Alex Chriss said the collaboration will strengthen its purpose of integrating PayPal’s payment capabilities with the cryptocurrency world.
Over the years, we have been working with Coinbase to provide a simple and familiar way for PayPal users to fund cryptocurrency purchases at Coinbase, allowing optimal integration of classes. The goals were even more aligned as we implemented PYUSD and combined it with payment experience. This has enabled larger commercial applications.
Alex Chriss, President and CEO of PayPal
The Coinbase and PayPal collaboration is coming at a particularly important time due to the regulation of US stubcoin. As Criptonoticias reports, the US Congress is approaching approval of legislation that establishes a clear regulatory framework for this type of digital assets.
The White House-backed law offers greater legal certainty and could encourage wider adoption of steady coins in trade and finance.
Alliances also have institutional elements. Institutional Coinbase emphasized that the initiative will promote the usefulness of institutional stubcoins by providing free conversions to the dollar and providing efficient custody.
This could benefit thousands of companies already using cryptocurrency, allowing PYUSD to be integrated more liquidally and explore its use in large-scale transactions.
According to data from CoinMarketCap, PYUSD’s total capital is $860 million, making it sixth among the most-selling stable currencies, after USDCs from Tether USDT, Circle, Dai, USDE and FDUSD.
