Coinbase waives fees on PayPal's stablecoin in crypto payments push
Coinbase, the largest publicly traded cryptocurrency exchange, is waiving fees on transactions connected to PayPal's stablecoin and allowing its users to redeem the token directly for U.S. dollars, a major milestone for PayPal as the company doubles down on crypto payments.
The move is part of a joint effort by Coinbase and PayPal to increase the adoption of PayPal's stablecoin, called PYUSD, which it launched in 2023. PayPal says the integration with Coinbase will allow merchants on its network to settle directly in PYUSD instead of traditional financial rails.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents like PayPal say that they could be used to send payments instantly.
"This combination of being able to connect the consumer bases of PayPal and Coinbase, bringing our merchants to the table, bringing [Coinbase's] institutional access to the table - we think that it creates a really, really powerful combination," said Jose Fernandez da Ponte, PayPal's senior vice president of blockchain, crypto and digital currencies.
The two companies also plan on partnering for future efforts to increase the adoption of stablecoins for payments and explore use cases for PYUSD on decentralized finance platforms, which allow users to transact directly on a blockchain network without intermediaries.
"This is a partnership that is all about advancing the future of global payments, taking stable coins mainstream, pushing forward this technology," said Lauren Abendschein, global head of institutional sales at Coinbase.
Coinbase has previously only offered the same zero-fee treatment for Circle's stablecoin, USDC, the number two stablecoin in terms of market capitalization.
"Definitely there will be cases for payments where people will make a choice between PYUSD and USDC, and we want to make sure that we establish PYUSD as the best stablecoin for payments," said Fernandez da Ponte.
Circle has also doubled down on the use of its stablecoin for payments. On Monday, the company announced the launch of its Circle Payments network designed for cross-border payment and real-time settlement of its stablecoins between financial institutions.
Stablecoins have a market capitalization of more than $238 billion, according to crypto data provider CoinGecko. PayPal's stablecoin has a market cap of only about $872 million, but it could stand to gain greater market share through its integration with Coinbase.
The partnership between the two companies is happening as the U.S. Congress appears likely to pass a bill creating stablecoin rules for the first time. The House of Representatives and the Senate have both advanced bills to create a regulatory regime for stablecoins, and the White House said it wants to see a final bill passed by August.
President Donald Trump has sought to broadly overhaul U.S. cryptocurrency policies after courting cash from the industry during his presidential campaign. In office, he has appointed crypto-friendly leaders to agencies like the Securities and Exchange Commission and signed an executive order last month to create a strategic cryptocurrency reserve.
In addition, Trump Media & Technology Group, which is majority-owned by the president, on Tuesday said it had reached a binding agreement to roll out an array of retail investment products, including crypto, in its latest bid to diversify into financial services.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
4 days ago
- CNA
Gemini confidentially files for US IPO as crypto markets heat up
Gemini, a crypto exchange run by billionaire twins Tyler and Cameron Winklevoss, on Friday disclosed it had confidentially filed for a U.S. initial public offering, as digital asset firms seize on renewed market momentum. Several high-profile companies, including those in high-risk sectors such as crypto and financial technology, have launched successful listings in recent weeks, reflecting pent-up demand and renewed vigor in the capital markets. Earlier this week, stablecoin issuer Circle went public in a blowout debut on the New York Stock Exchange. The surge in cryptocurrency IPOs signals a turning point for the industry, reflecting growing confidence among digital asset firms to attract mainstream investors and bringing increased transparency, regulatory scrutiny and capital that could help solidify crypto's place in traditional financial markets. Gemini, which operates a trading platform enabling investors to buy, sell and store more than 70 crypto tokens, said it has not yet determined the size or proposed price range for its offering. "Gemini's move contributes to the broader momentum and reinforces the idea that crypto-native firms are increasingly preparing to access public markets," said Kat Liu, vice president at IPOX. "More broadly, this signals that long-anticipated firms are now ready to reengage with public capital," Liu added, noting that investor appetite is returning, especially for companies with well-defined business models in strategic sectors such as fintech, AI and digital assets. The Winklevoss twins shot to fame after they sued Facebook and its CEO Mark Zuckerberg, alleging he had stolen their idea for the social networking site. They agreed to a settlement in 2008, in which they received cash and Facebook stock. GROWING MOMENTUM The global cryptocurrency market is currently valued at roughly $3.3 trillion with bitcoin trading firmly above the key $100,000 apiece milestone, according to data from CoinMarketCap. "A successful listing would confirm that the crypto thaw is real," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "If equity underwriters smell a new fee stream, expect the calendar to unfreeze for everything from fintech to AI chips." The industry, particularly after the approval of spot bitcoin ETFs in the U.S., has attracted billions in inflows from institutional investors seeking exposure to the asset class. In May, Coinbase became the first U.S. crypto-focused company to join the S&P 500, a watershed moment for the industry that signaled rising mainstream acceptance of digital assets. As the crypto sector matures financially and gains regulatory footing, firms are becoming more integrated into traditional markets, though analysts caution that volatility and shifting rules still pose challenges. This marks a sharp turnaround for an industry that spent more than a decade under intense regulatory scrutiny worldwide. After the collapse of crypto exchange FTX in 2022, many institutional investors retreated from the digital asset market. Prices later recovered, and the sector gained fresh momentum when U.S. President Donald Trump voiced support during his campaign, pledging to be a "crypto president."
CNA
4 days ago
- CNA
Crypto exchange Gemini confidentially files for US IPO
Crypto exchange Gemini said on Friday it had confidentially filed for a U.S. initial public offering, as digital asset companies move to tap into renewed investor risk appetite amid improving market conditions. Several high-profile companies, including those in high-risk sectors such as crypto and financial technology, have launched successful listings in recent weeks, reflecting pent-up demand. Earlier this week, stablecoin issuer Circle went public in a blowout debut on the New York Stock Exchange. Analysts said Circle's successful debut could encourage more cryptocurrency firms to pursue public listings, adding that the trajectory is likely to embolden others eyeing stock market debuts. Gemini, which operates a trading platform enabling investors to buy, sell and store more than 70 crypto tokens, said it has not yet determined the size or proposed price range for its offering. The surge in cryptocurrency IPOs signals a potential turning point for the industry, suggesting growing confidence among digital asset firms in their ability to attract mainstream investors. This wave of public listings could bring increased transparency, regulatory scrutiny and capital to the sector, helping solidify crypto's place within traditional financial markets. However, analysts have cautioned that challenges remain as companies navigate volatile markets and evolving regulations. In May, Coinbase became the first U.S. crypto-focused company to join the S&P 500, a watershed moment for the industry that signaled rising mainstream acceptance of digital assets. As the sector matures financially and in regulatory matters, crypto firms are becoming more integrated into the traditional market landscape. This marks a sharp turnaround for an industry that spent more than a decade under intense regulatory scrutiny worldwide. After the collapse of crypto exchange FTX in 2022, many institutional investors retreated from the digital asset market.
CNA
4 days ago
- CNA
Crypto firm Gemini confidentially files for US IPO
Crypto firm Gemini said on Friday it had confidentially filed for a U.S. initial public offering, as digital asset companies move to tap into renewed investor risk appetite amid improving market conditions. Several high-profile companies, including those in high-risk sectors such as crypto and financial technology, have launched successful listings in recent weeks, reflecting pent-up demand. Earlier this week, stablecoin issuer Circle went public in a blowout debut on the New York Stock Exchange. Analysts said Circle's successful debut could encourage more cryptocurrency firms to pursue public listings, adding that the trajectory is likely to embolden others eyeing stock market debuts.
