Coinbase Launches Free Conversion for PayPal’s PYUSD Stablecoin
Coinbase (COIN) will offer free conversions between PayPal’s PYUSD stablecoin and U.S. dollars to promote on-chain payments. This initiative targets both retail and institutional customers and aims to integrate PYUSD into PayPal’s merchant network, enhancing its use in everyday transactions.
Stablecoin Market Dynamics
- Stablecoins are pegged to traditional currencies, mainly the dollar, and are growing rapidly.
- Standard Chartered forecasts the market could reach $2 trillion by 2028, up from $220 billion currently.
- Regulatory advancements in the U.S. are intensifying competition among stablecoin issuers.
- Binance partnered with Circle to utilize USDC for trading and payments.
- Tether is considering a U.S.-only stablecoin in response to new regulations.
- PayPal's PYUSD has increased to $860 million in circulation and offers a 3.7% annual yield to attract users.