PayPal Partners With Coinbase for PAYUSD Reward System AllinCrypto May 6, 2025
Paypal has partnered with Coinbase and rolled out a new PAYUSD reward system as part of their new collaboration.
The new PAYUSD reward system will allow holders of the PayPal crypto stablecoin to earn passive rewards based on a 3.7% APR.
Coinbase will offer fee-free purchases of the PAYUSD stablecoin while making the stablecoin available to a wider audience outside of PayPal’s payment app and website.
Coinbase x PayPal to collaborate on PAYUSD incentives
In a press release on April 24, 2025, PayPal and Coinbase plan to expand their partnership to increase the distribution and adoption of stablecoins such as PayPal’s PAYUSD.
Pegged to the price of one dollar, Coinbase users will be able to utilize PAYUSD to earn passive rewards, buy, sell, and trade PAYUSD with zero transaction fees, and use the stablecoin for decentralized financial applications.
From Brian Armstrong, CEO, Coinbase:
“We’re excited to be partnering with PayPal. Their more than 430 million consumer and merchant accounts offer an unprecedented opportunity to increase stablecoin adoption globally.”
This partnership expansion follows on from PayPal and Coinbase’s initial partnership in 2021, which allowed PayPal users to fund Coinbase accounts and make withdrawals or purchases.
Paypal USD and cross-border payments
Paypal USD or PAYUSD is a stablecoin created and issued by Paxos Trust Company, licensed by the New York State Department of Financial Services.
As a fully regulated stablecoin token, reserves of PAYUSD are backed 1:1 by existing US dollar deposits, with PAYUSD also being available on Venmo.
In April 2025, the total stablecoin market capitalization reached $236B, making a new all-time high in Q1 2025.
Bitwise has called for a ‘Stablecoin Summer’ as institutions anticipate adopting digital dollars for ease of use in financial situations.
Circle, the issuer of the USDC stablecoin, announced that its Circle Payments Network will allow banks to utilize stablecoins in cross-border transactions, finalizing international payments within seconds thanks to blockchain technology.
The post PayPal Partners With Coinbase for PAYUSD Reward System first appeared on AllinCrypto.
