PayPal to Offer Yield on Stablecoin Holdings
Payments giant PayPal is reportedly set to introduce a new feature that will allow customers to earn yield on their holdings of the company’s proprietary stablecoin product, PayPal USD (PYUSD). According to a recent report by Bloomberg, PayPal is looking to incentivize the use of its stablecoin by offering users the opportunity to earn rewards on their balances.
What to Expect
The program is expected to launch in the summer, with users of both PayPal and Venmo eligible to earn 3.7% annually on their PYUSD holdings in their crypto wallets. The rewards will accrue daily and be paid out monthly in PYUSD, which users can then convert to fiat currency, use for payments, or send to other users.
PayPal’s Strategy
Jose Fernandez da Ponte, PayPal’s senior vice president and general manager of blockchain, crypto, and digital currencies, stated in an interview with Bloomberg that the company’s goal is to promote the use of stablecoins as a form of payment on its platform. He emphasized the long-term vision of stablecoins as the next generation of payment rails, acknowledging that it is a journey that will take time.
The Launch of PYUSD
PYUSD was launched in 2023 in partnership with stablecoin issuer Paxos. According to Paxos, the token’s reserves are backed 1:1 by US dollar deposits, ensuring full redemption availability. The collaboration aims to provide users with a stable and reliable digital currency option for their transactions.
Stay Updated with The Daily Hodl
For the latest news and updates on cryptocurrency and blockchain technology, follow The Daily Hodl on X, Facebook, and Telegram. Subscribe to receive email alerts directly to your inbox and stay informed about price action and market trends. Don’t miss out on the opportunity to surf The Daily Hodl Mix for a diverse range of content.
Generated Image: Midjourney