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PayPal Offers 3.7% Annual Yield on PYUSD Stablecoin to Boost Adoption
Generated by AI AgentCoin World
Wednesday, Apr 23, 2025 8:23 am ET1min read
PayPal is set to offer U.S. users a 3.7% annual yield on balances of its
USD (PYUSD) stablecoin, a move aimed at encouraging broader adoption of the token. The yield will be accrued daily and paid monthly in PYUSD, making it a more attractive option for users. This initiative is part of PayPal's strategy to make PYUSD stand out in the competitive stablecoin market.The program, scheduled to launch this summer, will allow users to earn rewards by keeping their stablecoins in PayPal and Venmo wallets. Users will have the flexibility to spend the stablecoin via PayPal Checkout, transfer it to other users, or convert it to traditional dollars. This feature is designed to integrate seamlessly with PayPal's existing payment infrastructure, enhancing user convenience and utility.
Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies, highlighted that this move is part of a broader 10-year journey to build a new set of payment rails. The goal is to reduce costs and improve the speed of transactions. CEO Alex Chriss also emphasized that stablecoins present an opportunity to reshape the economics of the payment landscape, aligning with PayPal's vision for the future of digital payments.
PYUSD, launched in 2023, is issued by Paxos Trust and backed by reserves such as U.S. Treasuries. Despite PayPal's strong brand recognition, PYUSD's market share is relatively small compared to market leader Tether's USDT. This new yield offering is expected to boost PYUSD's appeal and potentially increase its market share.
This move is also part of PayPal's ongoing efforts to expand its cryptocurrency offerings. Earlier this month, the company added Chainlink (LINK) and Solana (SOL) to its list of supported cryptocurrencies, demonstrating its commitment to integrating digital assets into its platform. By offering a competitive yield on PYUSD, PayPal aims to attract more users to its stablecoin and further solidify its position in the digital currency space.
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