Coinbase has announced the introduction of free conversions between PayPal's PYUSD stablecoin and the U.S. dollar, targeting both retail and institutional users. This initiative aligns with Coinbase's efforts to promote stablecoins as viable alternatives to traditional payment methods. The exchange plans to broaden its infrastructure support for stablecoin transactions, particularly for PayPal's largest merchant partners, potentially simplifying everyday transactions using stablecoins. The stablecoin market, which is rapidly evolving, is projected to reach a market cap of $2 trillion by 2028, up from its current valuation of $220 billion. Competitive dynamics among stablecoin issuers are intensifying, especially in the U.S. market, where regulatory frameworks are taking shape. Significant players like Binance and Circle are also expanding their offerings, highlighting the fierce competition as traditional financial entities increasingly engage with stablecoins. This announcement follows PayPal's recent growth in stablecoin offerings and its aim to attract users through yields on PYUSD.

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