PayPal, Coinbase partner to eliminate trading fees on PYUSD in bid to boost adoption

PayPal and Coinbase have partnered to remove trading fees from the stablecoin PayPal USD (PYUSD) to boost its adoption, the companies announced Thursday. 

Users can now buy, sell and trade PYUSD on Coinbase without any platform fees and redeem PYUSD 1:1 for USD directly on the exchange, according to a Thursday release . The two firms also said they are exploring novel PYUSD use cases on decentralized finance ( DeFi ) platforms. 

"For years, we've worked with Coinbase to enable a best-in-class integration to provide a simple, familiar way for PayPal users to fund crypto purchases on Coinbase. Our objectives aligned further as we deployed PYUSD in combination with our payments expertise enabling greater commerce applications," said PayPal President and CEO Alex Chriss in a statement. 

This new partnership comes after PayPal unveiled a 3.7% annual yield for individuals holding PYUSD in their PayPal or Venmo wallets starting in the summer of 2025.  In 2013 , the firm behind PayPal acquired the firm developing the mobile payments app Venmo for $800 million to incorporate Venmo into PayPal's services. 

Since PayPal launched the Ethereum-based PYUSD in August 2023, the firm has made other moves to drive its adoption. In May 2024, PayPal expanded PYUSD on  Solana , tapped the crypto custodian  Anchorage Digital to help create a stablecoin reward program, and partnered with the crypto platform MoonPay to let users buy PYUSD using numerous payment methods. 

PYUSD maintains a $866 million market capitalization, generating $24.3 million in trading volume in the past 24 hours, according to The Block's PYUSD price page . 

PYUSD competes with other major stablecoin players such as Tether's USDT and Circle's USDC, which hold nearly $146 billion and $62 billion of the $228 billion total stablecoin supply as of April 24, The Block's Data Dashboard shows. 

Coinbase is one of the largest cryptocurrency exchanges in the United States. In the fourth quarter of 2024, the firm saw $439 billion in total volume.