PayPal increases Ante in StableCecoin Wars as it is set to start offering us users 3.7% annual return on the balance of its PayPal USD (PYUSD) stableecoin.
The yield that is accrued daily and paid monthly in PYUSD is designed to encourage adoption by making the token more appealing and standing out among the competition, Bloomberg reported.
The program is set for launch this summer and allows users to earn rewards while keeping their stablecoins in Paypal and Venmo drawing books. StableCOin can be used via PayPal Checkout, transferred to other users or converted to traditional dollars.
“We are halfway on a 10-year journey,” said Jose Fernandez da Ponte, PayPal’s head of Blockchain and digital currencies. The goal, he added, is to build a new set of payment rails that reduce costs and improve speed. CEO Alex Chriss repeated the point and said stableecoins give a chance to reshape the economy of the payment landscape.
Pyusd was launched in 2023 and is issued by Paxos Trust and is supported by reserves such as US Treasury. Despite PayPal’s brand recognition, Pyusd’s market share remains small – approx. $ 868 million – compared to market leader Tether’s $ 143 billion USDT, according to rwa.xyz data.
The move is also part of Paypal’s ongoing cryptocurrency -push. Earlier this month, the company added Chainlink (Link) and Solana (SOL) to its growing list of supported cryptocurrencies.
