Coinbase Global, Inc. COIN shares are trading higher on Thursday.

Coinbase has announced an expanded partnership with PayPal Holdings PYPL, which aims to increase the adoption and utility of PayPal's U.S. dollar-backed stablecoin PYUSD/USD.

The development follows comments from Coinbase's Head of Strategy, John D'Agostino, who noted that Bitcoin has secured its place alongside gold as a strategic asset for preserving capital during times of financial uncertainty.

Also Read: Coinbase Global Goes From Boom To Bust Amid Crypto Winter, Analyst Trims Q1 Estimates

The latest move is designed to give millions of Coinbase users direct access to the stablecoin while enhancing cross-border utility and driving integration across various institutional platforms.

Alex Chriss, PayPal's president and CEO, said the company has long aligned its goals with simplifying users' digital currency experience. "We are excited to drive new, exciting, and innovative use cases together with Coinbase and the entire cryptocurrency community, putting PYUSD at the center," Chriss stated.

The statement reflects their joint ambition to leverage both firms' strengths—Coinbase's crypto infrastructure and PayPal's payment legacy—to promote PYUSD's use in digital commerce and financial services.

Brian Armstrong, CEO of Coinbase, echoed the enthusiasm, emphasizing the potential scale of this collaboration. "Their more than 430 million consumer and merchant accounts offer an unprecedented opportunity to increase stablecoin adoption globally," he noted.

Coinbase will offer 1:1 PYUSD to USD conversions with no platform fees as part of this extended agreement. Users can buy, sell, and redeem the stablecoin seamlessly on Coinbase's ecosystem.

The firms are also collaborating on innovations in global payments, with a focus on stablecoin-based tools that enhance money movement. Moreover, the duo plans to explore potential use cases in decentralized finance (DeFi), adding an additional layer of functionality to PYUSD in the on-chain economy.

This development expands on the groundwork laid in 2021, when Coinbase enabled PayPal-based crypto funding and fiat withdrawals.

According to Benzinga Pro, COIN stock has lost over 10% in the past year. Investors can gain exposure to the stock via First Trust SkyBridge Crypto Industry and Digital Economy ETF CRPT.

Price Action: COIN shares are trading higher by 1.46% to $177.56 at last check Thursday.

Read Next:

• Bitcoin Has Likely Bottomed At $74,500, $200,000 Is On The Table, Says Arthur Hayes

Photo via Shutterstock