Coinbase to Offer Free PYUSD-to-Dollar Conversions in Push for On-Chain Payments
Crypto exchange Coinbase (COIN) has announced it will allow free conversions between PayPal’s PYUSD stablecoin and the U.S. dollar, aiming to drive adoption of on-chain payments.
The move applies to both retail and institutional clients, and is part of a broader collaboration between Coinbase and PayPal.
As part of the effort, Coinbase will promote PYUSD to PayPal’s vast merchant network, potentially enabling the stablecoin’s use in everyday transactions — a step toward mainstream utility for digital dollars.
Stablecoin Competition Accelerates
The stablecoin market is growing fast, with Standard Chartered projecting a $2 trillion sector by 2028, up from today’s $220 billion. Stablecoins, primarily dollar-pegged tokens like PYUSD, USDC, and USDT, are gaining ground as faster and cheaper alternatives to traditional payment rails, especially for cross-border transfers.
PayPal launched PYUSD in 2023 and has already introduced incentives like a 3.7% annual yield to attract users. Now, this partnership with Coinbase could help boost both liquidity and practical usage.
Meanwhile, rivals like Binance, Circle (USDC), and Tether (USDT) are not sitting still. Circle launched a new remittances network this week, and Tether is reportedly considering a U.S.-focused stablecoin offering. The race for dominance in the regulated stablecoin market is clearly heating up.
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