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 is boosting balances by offering a 3,7% annual reward rate on their holdings beginning this summer that will be paid in stablecoin PYUSD.