PayPal and Coinbase extend their partnership and ambitions

They are two giants in their respective markets that have just consolidated their partnership in the United States. This is PayPal and Coinbase, which are now seeking to increase the adoption, distribution and use of PayPal USD stablecoin (PYUSD). This strategy represents a logical commitment given the expectations of the stablecoins market today.

FACTS

• In addition to the announcement of the consolidation of its partnership with Coinbase, PayPal has been working for a long time with the cryptocurrency trading platform to promote the democratization of these assets. Since 2021, the two partners have allowed Coinbase users to use their PayPal accounts to finance their purchases on Coinbase.

• Today their new joint work will have to place Paypal's stablecoin, the PYUSD, at the heart of their common concerns and ambitions.

• Both partners specify that the strengthening of their association will have to lead to the development of new cases of use of digital currencies. Coinbase's millions of customers will benefit from direct access to buy, sell and exchange PYUSDs at no cost.

• In parallel, PayPal comes to announce Want to pay Americans with PYUSDs in their PayPal or Venmo wallets, up to 3.7% per year.

ISSUES

• Consolidate its offer : In 2023 PayPal launched its own stablecoin indexed to the US dollar. This positioning was not without effort for the online payment giant who had decided to interrupt This work on its stablecoin in February 2023, as American regulators strengthened their monitoring of cryptocurrency.

• Capitalising on a future market : The political climate has since changed. According to a report recently published by Standard Chartered and reproduced in particular by BloombergThe stablecoins market could reach $2,000 billion by the end of 2028. This estimate remains subject to the expected adoption of the U.S. bill " GENIUS Act (Guiding and Establishment National Innovation for U.S. Stablecoins), aimed at establishing a clear regulatory framework for stablecoins.

PERSPECTIVE

• The cryptoactive market is consolidating in the United States and this new rapprochement between Paypal and Coinbase illustrates the commitment of the players in attendance to position themselves as references to this particularly competitive trend.

• The race is launched between these different actors who play the map of the multiplication of services and offers. And for that, they are working in particular to obtain new licences, including banking, in the United States. The Wall Street Journal thus believes that major crypto platforms are currently seeking their bank license, such as Circle or Coinbase.

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