Why trust Greenbot
PayPal and Coinbase joined forces on April 24, 2025, to make PayPal’s stablecoin easier and more rewarding to use. The partnership removes all trading fees for PYUSD on Coinbase and will soon offer users a 3.7% annual yield.
The companies hope this advancement will encourage more people to use PYUSD for everyday payments and help it compete with bigger stablecoins like Tether and Circle.
Coinbase users can now buy, sell, and trade PYUSD without any fees. They can also exchange PYUSD for US dollars at a 1:1 rate directly on Coinbase. This change aims to simplify access to cryptocurrency for both newcomers and institutional investors.
Starting this summer, people who keep PYUSD in their PayPal or Venmo wallets will earn 3.7% rewards each year. These rewards accumulate daily and are paid out monthly. Users can spend these rewards, convert them to other currencies, or send them to friends.
“We’re demonstrating our commitment to an innovative, commerce-ready ecosystem by enabling [PYUSD] for cross-border transfers, vendor payments, and future use cases like payouts and bill pay,” said Alex Chriss, PayPal’s President and CEO.
Brian Armstrong, Coinbase CEO, showed excitement about using PayPal’s large user base. “[PayPal’s] more than 430 million consumer and merchant accounts offer an unprecedented opportunity to increase stablecoin adoption globally,” he stated in the joint press release.
PYUSD currently has a market value of $860 million. That’s much smaller than market leaders Tether’s USDT ($146 billion) and Circle’s USDC ($62 billion). This new partnership aims to close this gap as the stablecoin market continues to grow, with Standard Chartered projecting that it will reach $2 trillion by 2028.
The companies will also look into using PYUSD in decentralized finance and other blockchain systems. This expansion comes as Congress works on new regulations for stablecoins, expected later this year.
Financial markets responded positively to the news. PayPal’s stock price rose 3.7% over the past week, outperforming the tech-heavy Nasdaq Composite’s 2.3% gain during the same period.
In response to growing competition, market leader Tether reportedly plans to issue a stablecoin specifically designed for US users.
Stablecoins have gained popularity for international payments because they offer faster transactions and lower fees compared to traditional banking systems. The PayPal-Coinbase alliance represents a strategic move to gain market share in an increasingly competitive field.
