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.

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

The partnership is another sign of stablecoin issuers jockeying for market share as regulation in the U.S. is advancing.