PayPal and Coinbase Expand PYUSD Partnership to Drive Stablecoin Adoption

PayPal and Coinbase are deepening their collaboration to boost adoption of PayPal USD (PYUSD), a U.S. dollar-backed stablecoin launched by PayPal. In a recent announcement, Coinbase confirmed it will enhance support for PYUSD by enabling 1:1 conversions with USD across its trading and custody platforms. This move aims to increase PYUSD’s utility and promote its use among both retail and institutional users.

The partnership, originally launched in 2021, allowed Coinbase users to link PayPal accounts for crypto purchases and fiat withdrawals. The latest phase builds on that foundation by integrating stablecoin payments more deeply into Coinbase’s ecosystem, advancing broader use cases for PYUSD in decentralized finance (DeFi) and on-chain transactions.

PayPal CEO Alex Chriss expressed enthusiasm about the collaboration, tweeting, “Incredibly excited to work with Brian Armstrong and the Coinbase team to create more seamless ways for Coinbase’s users to access PYUSD.” He added that the companies are “innovating and building the future of commerce using AI, blockchain, and stablecoins.”

According to PayPal’s official statement, the alliance aims to empower developers and customers by expanding digital currency use in commerce, payments, and decentralized platforms. By positioning PYUSD at the center of the crypto economy, the companies plan to unlock new DeFi applications and drive mainstream adoption.

The partnership signals a strategic push by PayPal and Coinbase to enhance stablecoin infrastructure and usability. As demand grows for trusted digital payment solutions, PYUSD could emerge as a leading stablecoin in the evolving Web3 landscape. This collaboration highlights both firms’ commitment to shaping the future of digital finance through trusted, blockchain-based innovations.