The move comes two days after Circle, a stablecoin partner of Coinbase, debuted a payment network challenging PayPal's remittance business.

Coinbase, the largest publicly traded cryptocurrency exchange, is waiving fees on transactions connected to PayPal's stablecoin and allowing its users to redeem the token directly for U.S. dollars, a major milestone for PayPal as the company doubles down on crypto payments.

PayPal and Coinbase have announced an expanded partnership aimed at growing the use of PayPal USD (PYUSD), their U.S. dollar-backed stablecoin. As part of the collaboration, Coinbase users can now buy and sell PYUSD with zero transaction fees,