365Crypto
PayPal is stepping up its game in the cryptocurrency world by offering a 3.7% annual return on its stablecoin, PayPal USD (PYUSD). This new initiative is set to kick off this summer and is designed to encourage U.S. users to adopt PYUSD more widely.
The 3.7% yield will be paid out monthly, with daily accruals, making it an attractive option for those looking to earn rewards while keeping their stablecoins in PayPal and Venmo wallets. Users can spend, transfer, or convert their PYUSD into traditional dollars anytime they like.
Jose Fernandez da Ponte, PayPal’s blockchain and digital currency chief, said the company is halfway through a decade-long journey to create new, cost-effective, and faster payment systems. Stablecoins, like PYUSD, are key to this vision, allowing PayPal to innovate in the digital payments space.
Despite PayPal’s strong brand presence, PYUSD has a modest market share of about $868 million, a far cry from the $143 billion held by Tether’s USDT. However, the 3.7% yield is PayPal’s way of standing out in the competitive stablecoin market.
This move comes after PayPal added Chainlink (LINK) and Solana (SOL) to its list of supported cryptocurrencies earlier this month, showing the company’s continued commitment to the crypto sector.
