PayPal to Offer 3.7% Annual Yield on PYUSD to Boost Adoption Amid Stablecoin Competition
PayPal is intensifying its efforts in the stablecoin market with plans to offer U.S. users a 3.7% annual return on their PayPal USD (PYUSD) stablecoin balances.
This yield, which will be accrued daily and paid monthly in PYUSD, is designed to enhance the appeal of the token and encourage wider adoption in an increasingly competitive market, according to Bloomberg.
Slated to launch this summer, the program allows users to earn rewards while storing their stablecoins in PayPal and Venmo wallets. PYUSD can be used for purchases via PayPal Checkout, transferred to others, or converted into traditional dollars.
“We’re halfway through a 10-year journey,” said Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies. He emphasized that the company is working to build new payment systems that reduce costs and improve transaction speed. CEO Alex Chriss echoed these sentiments, noting that stablecoins have the potential to transform the economics of payments.
Launched in 2023, PYUSD is issued by Paxos Trust and backed by assets like U.S. Treasuries. Despite PayPal’s strong brand presence, PYUSD’s market share is still relatively small at $868 million, compared to Tether’s (USDT) dominant $143 billion, based on data from RWA.xyz.
This move is also part of PayPal’s broader push into cryptocurrencies. Earlier this month, the company expanded its offerings by adding Chainlink (LINK) and Solana (SOL) to its supported cryptocurrencies list.
