Coinbase Takes On PayPal with Stablecoin Payments for Businesses

Name: Coinbase Takes On PayPal with Stablecoin Payments for Businesses
Uploaded: 2025-10-17T04:58:23+00:00
Duration: 12 min 16 s
Channel: Crypto Robot

Crypto Robot

Coinbase has officially launched a new stablecoin payments platform for businesses, taking a major step toward mainstream crypto adoption in global commerce. This platform allows companies to send, receive, and settle payments in stablecoins like USDC — instantly, securely, and with minimal fees compared to traditional banking systems.

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00:00Welcome back to the Deep Dive. Today we've got a pile of sources, articles, notes, analyses looking at a really significant strategic move.

00:10We're talking about the future of global business payments.

00:12That's right. A really fundamental area.

00:14And our mission today is, well, a deep dive into the launch of Coinbase business. This isn't just a minor update.

00:20No, not at all.

00:21Coinbase is actually building out a stable coin payments gateway, you know, financial infrastructure, specifically for companies, global companies.

00:30And it's aimed squarely at a problem that, well, if you run any kind of global operation, you definitely know it.

00:38The friction, the frankly ridiculous cost, and just how slow traditional cross-border payments are.

00:45Two days, five days. It's crazy.

00:47It really is lagging behind.

00:49So Coinbase is signaling something big here.

00:51Yeah.

00:51Moving beyond just being a trading platform, they're pushing right into core operational finance.

00:56Okay, let's unpack this.

00:57Yeah, and that framing is spot on because it looks like they want to own the business users, well, their operating account.

01:02The operating account.

01:03Exactly. So Coinbase is rolling out this new platform, and they're primarily targeting small and mid-sized firms,

01:10giving them one integrated place to manage treasury, earn yield, and crucially, send and receive USDC globally.

01:17Right. And the features they've built in really show they get the, you know, the pain points for finance teams trying to handle crypto.

01:25It's not just about complex wallet addresses this time.

01:28Precisely. They're really focused on making that switch from traditional fiat banking as smooth as possible.

01:33So let's talk immediate utility.

01:35Okay.

01:36You get real global payout capability. A business can send USDC to any compatible crypto wallet. Sure, that's standard.

01:43Mm-hmm.

01:43But the real kicker for adoption might be sending payments via email. If you've got the email address, you can send the money.

01:49That email bit is like the bridge, isn't it?

01:51Mm-hmm.

01:52But the part that probably makes a business owner really pay attention is the advantage with payment links.

01:57Right.

01:58Companies can create simple USDC payment options, put them on an invoice, maybe a checkout page, and bam.

02:04Two things traditional finance struggles with. Instant settlement.

02:07Almost instant, yeah. Fast.

02:09Fast settlement, and this is huge. No chargeback.

02:12You had a massive, massive benefit. I mean, think about an online seller losing, what, 3% to 5% maybe to charge back fraud and fees?

02:21Right. And waiting days for the money.

02:22Exactly. And then waiting a week for settlement.

02:25With Coinbase business, theoretically, they get the funds super fast, and that risk of the payment being reversed just, poof, basically gone because it's final on the blockchain.

02:34That's a serious improvement to cash flow.

02:37Huge. And to make it feel less like crypto weirdness and more like normal finance?

02:43Yeah.

02:43The integration part seems pretty smart.

02:45Yeah. They didn't try to reinvent accounting software.

02:48Good.

02:48This platform plugs right into established systems like QuickBooks Zero. Plus, they've got crypto tax tools built in. That connection to the existing regulated financial back end, that's, I think, key for getting businesses on board.

03:01Right. Makes it feel familiar on the back end.

03:03Right.

03:03Reduces that big hurdle, that sort of behavioral friction you always see with Web3 adoption.

03:07Exactly.

03:07But the immediate hook, the shiny object to get companies to actually move funds over, that's the yield feature, isn't it?

03:14Oh, absolutely. They're offering currently around 4.1% APY on USDC balances.

03:21Wow.

03:21And you can cash out easily to link bank accounts. Getting that kind of yield on your stable operating cash, that's tough for a traditional bank to match right now, especially in a standard deposit account.

03:33Okay. Let's pause on that yield because it seems really central to the whole strategy.

03:37It absolutely is. When you look at the sources, they point to this critical financial engine behind it all. Coinbase has a revenue deal with Circle, right? The company that issues USDC.

03:49Right.

03:49Coinbase gets roughly a 50% cut of the interest generated by the reserves backing USDC.

03:55So every single dollar a business parks on Coinbase business, earning that 4.1%. It doesn't just help the business.

04:02Ah, it helps Coinbase too.

04:03Directly. It boosts Coinbase's bottom line by growing the total amount of USDC being used and held on their platform, on their rail.

04:11Okay. So this isn't just about collecting trading fees anymore. This is structural. They want to increase their interest earning assets under management. That makes sense. That's why it's a strategic pivot.

04:20Exactly right. And that's where we shift to the bigger picture, the strategic significance. If we connect this up, this platform positions Coinbase not just as an exchange or a place to hold crypto.

04:32Right. But as a full-blown crypto operating account, a financial hub for businesses, it becomes the center for their treasury, their transactions.

04:43It dramatically increases what people call stickiness, right? For listeners maybe less familiar, stickiness just means how hard it is or how reluctant a user is to leave a platform.

04:54Yeah.

04:55So if a business is getting a better yield on its cash and they could use that cash instantly for global payments without swapping back to fiat, well, it's a pretty powerful reason to keep the USDC right there in the Coinbase ecosystem.

05:08A very powerful incentive. And by doing this, they suddenly find themselves competing in two different arenas at once.

05:13Okay. Who are they up against?

05:14Well, first, they're challenging those modern fintechs focused on business banking. You know, the Brux's Mercurys of the world.

05:20Right. The neobanks for business.

05:22Exactly. And second, they're competing with existing crypto payment folks like BitPay or OpenNode.

05:28But Coinbase is offering something much more integrated, more treasury focused, plus that really critical yield component.

05:35So are they basically trying to become a bank just using crypto rails?

05:39Maybe more like trying to become the infrastructure under the bank.

05:43You know, this pushes the whole Web3 narrative forward quite a bit because it starts to blur that line between like decentralized on-chain money and traditional business operations.

05:53It really reinforces stable coins as actual money rails, essential plumbing for global commerce, not just some asset you trade.

06:00If big businesses start routing daily payments through tools like this, well, that drives huge network effects, deeper liquidity.

06:08It validates crypto as real backbone stuff.

06:10Okay. So let's zero in on the direct upsides for the businesses themselves.

06:14We mentioned speed, yield, no chargebacks.

06:16What about actual cost savings? How tangible is that?

06:19Potentially substantial savings compared to the old ways.

06:22Think about a common case.

06:23A medium-sized company sends, say, a $20,000 wire transfer overseas.

06:27Yep.

06:28That might cost them, what, $25, maybe $45 in fees, plus hidden correspondent bank fees.

06:35And then there's the time cost, waiting three, four, five days, sending that same payment using a stable coin rail like Coinbase business.

06:42It's almost instant.

06:43And a cost drops to, like, fractions of a penny in network fees, plus whatever small fee Coinbase charges.

06:51Multiply that difference across thousands of payments.

06:54It's enormous.

06:55That's the pitch, the dream scenario.

06:57But, okay, we have to talk about the challenges, the friction points.

07:01This isn't risk-free.

07:02Let's start with the non-tech hurdles.

07:04What are the big ones?

07:04The first, and probably the biggest, is regulation and compliance.

07:08For Coinbase to operate this truly globally, they have to navigate this incredibly complex patchwork of money transmission licenses, different rules everywhere, plus strict know your customer, KYC, and anti-money laundering AML checks in dozens of countries.

07:23It's a constant, expensive grind to get and keep that operational status without accidentally becoming regulated like a full bank everywhere.

07:31Okay, regulation is number one.

07:32Then you have the risks baked into the technology itself, right?

07:37Even with a stable asset like USDC.

07:40What does that mean for a business user?

07:42Yeah, you can't ignore those.

07:44A business using this faces several key risks.

07:46First, there's counterparty risk, the risk that Coinbase itself, the company holding your funds, could face financial trouble or regulatory issues.

07:56Right, platform risk.

07:57Then there's custody risk.

07:59Wow.

07:59Who actually controls the private keys to the funds.

08:03If the platform goes down, can the business get its money back easily?

08:07And, of course, smart contract risk.

08:09There's always a chance, however small, of a bug or an exploit in the underlying code that governs the stablecoin or the platform.

08:15And even though USDC aims for stability, there's still market risk, isn't there?

08:19We saw some wobbles and liquidity issues in stablecoins during stressful market periods before.

08:23Absolutely.

08:24That's always there.

08:25But maybe the single biggest hurdle is still that adoption friction we touched on.

08:29Convincing established businesses, especially older ones, with legacy systems.

08:33Yeah, getting them to change.

08:35Getting them to migrate away from the banking systems they've used for decades, that's a massive behavioral and operational shift.

08:42Even if you're offering 4.1% yield and no chargebacks, it takes time.

08:47We already mentioned the core financial driver for Coinbase, that Circle Revenue Share Agreement, makes growing USDC balances directly profitable for them.

08:56And they're also consolidating their existing products, right?

08:59Tidying things up.

09:00Yes, that's another piece.

09:02There is a clear plan, it seems, to fold their existing merchant checkout product, Coinbase Commerce, which is more decentralized, into this new unified business platform.

09:12Oh.

09:13And that unification is important.

09:14It takes those separate payment acceptance tools and combines them properly with treasury management, yield generation, trying to create a one-stop shop for businesses using crypto.

09:24Makes sense.

09:24So if you're, say, an investor watching this space, or maybe a developer, a builder, what are the key takeaways?

09:30What should you be tracking?

09:31Well, for builders, I think the message is, this is becoming the new payment layer.

09:36If you're building APIs for e-commerce, for sauce tools, supply chain platforms, you probably need to think about integrating with the Coinbase Business API.

09:46You want to be part of this emerging rail.

09:48Get ahead of the curve.

09:49And for investors?

09:50For investors, it really comes down to watching adoption rates.

09:55How many businesses are actually moving real operational payments, vendor payments, payroll, maybe, onto USDC?

10:02And specifically, what's the total dollar volume flowing through this new payment system?

10:07Right.

10:07If stablecoin demand is really going to grow in a sustainable way, it has to come from this kind of utility, not just speculation or trading.

10:14So this whole launch, this whole platform, it feels like a massive bet on where money is going.

10:20Let's try to recap the main takeaway here.

10:23Coinbase is basically betting that stablecoins are the next fundamental infrastructure for global business.

10:28Yeah, that's the bet.

10:29Potentially making traditional banking look slow, expensive.

10:33Kind of like a backup option eventually.

10:35Sandy.

10:35Which leads us to a direct question for you, the listener.

10:38If you run a business and you weigh up everything we just discussed, the benefits, the risks, would you rather earn that, say, 4.1% yield on your operating cash in stablecoin with instant cheap global access or keep it in fiat in a traditional bank?

10:55It's becoming a real choice.

10:57That tradeoff is getting sharper faster.

10:58And that leads right into the final, maybe provocative thought we want to leave you with today.

11:03What happens if businesses globally do start routing the bulk of their payments?

11:07Vendors, payroll, supply chain, through stablecoins like USDC.

11:12What if fiat rails really do become just the backup?

11:16What does that kind of fundamental shift mean for the global power structure of money, for the central banks who currently sit at the top of that structure?

11:23It's a huge question.

11:24A really huge question.

11:25And the answer is unfolding right now, isn't it?

11:27It really is.

11:28And look, if you found this deep dive useful, if you appreciate this kind of focus analysis, please take a quick second to engage with us.

11:38You know, subscribing, leaving a comment, maybe sharing this with someone who'd find it interesting.

11:42It genuinely helps support these deep dives.

11:45It really does.

11:46Helps with visibility.

11:47Let's us keep doing this.

11:48Yeah.

11:48Boosts us in the algorithm.