- Coinbase Canada enhances user experience by integrating PayPal for crypto transactions.
- Rewards on stablecoins persist despite new U.S. regulations banning issuer-provided interest.
- Canada continues to emerge as a key market for global crypto expansion.
Coinbase Canada has introduced PayPal integration as the company continues to pursue new ways of making it convenient for Canadians to buy and sell cryptocurrencies on its platform. The update, which reflects the increased interest in broadening access to digital assets, is intended to facilitate transactions by including the most popular payment method. PayPal is to be added to the list of available funding methods along with Interac e-Transfer, EFT, direct deposits, and debit cards.
Growing Demand for Crypto in Canada
The number of Canadians who possess cryptocurrencies exceeded five million. The new PayPal option comes after a period of increased interest in digital finance. PayPal states that it has almost 10 million active accounts in Canada, thus being one of the most reliable sources in the country.
BREAKING: 🇨🇦Canadians can now buy and sell #Bitcoin using PayPal on Coinbase.
Over 5 million Canadians own crypto. This move offers nearly 10 million PayPal users a new, streamlined way to access crypto.📲 pic.twitter.com/2cm0yKcPtR
— Bitcoin.com News (@BTCTN) August 5, 2025
PayPal can now use Coinbase to bring more people into the cryptoeconomy, and it has since developed a larger plan. Coinbase aims to have one billion international users. The partnership will be in line with that mission as it provides convenience and lowers barriers to entry.
The now simplified process will enable all Canadians to experience the entire product offering of Coinbase, including the full product suite, which consists of trading, staking, and advanced crypto tools, via PayPal. This also aids its wider strategy to enhance its presence in priority markets, as is the case with Coinbase.
Stablecoin Reward Programs Face Scrutiny
Additional interest has been drawn to Coinbase and PayPal as they have been paying rewards using stablecoins. It’s broader crypto integration efforts, such as Coinbase’s recent collaboration with JPMorgan to link bank accounts with wallets, further emphasize its push into mainstream finance. At Coinbase, you can wait to receive a 4.1% yield on USDC, and PayPal 3.7% on PYUSD. These are the rates despite the recent U.S. enactment of the GENIUS Act.
The law prohibits stablecoin issuers from providing users with interest or yield, and these are considered investment products, not a means of payment. However, both enterprises claim that their initiatives are not in breach of the law. They contend that the rewards are supported using platform revenue-sharing and are not applicable as interest.
By reiterating that Coinbase is not the issuer of USDC, Coinbase CEO Brian Armstrong further asserted that the company is the custodian of the USDC coin and not the issuer. USDC was created as a stablecoin and is currently issued by Circle only. Armstrong promised investors that the rewards would be ongoing, which he referred to as a retention method.
Deepening Investment in the Canadian Market
After its launch in 2023, Coinbase Canada has since been the first and largest worldwide exchange registered as a Restricted Dealer. Canada is one of the company’s growth opportunities. Another step toward making access to digital finance more available was its recent integration with PayPal. Collaboration will help lower the cost of transactions and increase user trust. John Froese, the senior VP of PayPal, termed the move an extension of its digital commerce strategy and gave credence to the company’s commitment to consumers in a highly digitalizing economy.
Coinbase Targets Institutional Investors With Convertible Note Offering
Coinbase Global, Inc. (Nasdaq: COIN) also intends to issue $2.0 billion in convertible senior notes due 2029 and 2032 in an offering restricted to qualified institutional buyers. Each series is aimed at $1.0 billion, offered under Rule 144A to qualified institutional buyers; within 13 days, they can also order more.
🚨 BREAKING: COINBASE PLANS $2 BILLION CONVERTIBLE NOTES OFFERING pic.twitter.com/gx55GoNeud
— Wise Advice (@wiseadvicesumit) August 5, 2025
The unsecured notes will add semi-annual interest and can be exchanged for cash, Class A common stock, or both. The maturity dates are October 1, 2029, and October 1, 2032. Pricing will end with the final terms.
