PayPal is set to offer U.S. users a 3.7% annual yield on its dollar-backed stablecoin PayPal USD (PYUSD) as part of its broader strategy to expand in the digital asset space. The new program, launching this summer, will reward users with daily accruals paid monthly in PYUSD.
Key Features of the PYUSD Yield Program
- Eligibility: Available for balances in PayPal and Venmo wallets.
- Flexibility: Users can spend, send, or convert PYUSD to cash.
- Goal: Boost PYUSD adoption by enhancing its competitiveness in the stablecoin market.
Current Stablecoin Landscape
PYUSD trails behind market leaders like Tether (USDT) with a $143 billion market cap**, compared to PYUSD’s **$868 million. While Solana initially outpaced Ethereum in PYUSD supply, Ethereum now dominates.
PayPal’s Vision for Digital Payments
Jose Fernandez da Ponte, PayPal’s Blockchain Lead, emphasized building faster, lower-cost payment infrastructure. CEO Alex Chriss sees stablecoins as transformative for core payment systems.
Expanding Crypto Offerings
PayPal recently added support for Chainlink (LINK) and Solana (SOL), integrating more digital assets into its ecosystem.
About PYUSD
Launched in 2023, PYUSD is backed by:
- USD deposits
- Short-term U.S. Treasuries
- Cash equivalents
Issued by Paxos Trust, it’s among the first consumer-focused stablecoins from a major financial services firm.
Recent Developments
- U.S. Business Accounts: Can now buy, sell, hold, and transfer crypto.
- MoonPay Integration: Enables PYUSD purchases via debit/credit cards globally (except Canada), reducing transaction declines.
👉 Learn more about PayPal’s crypto services
FAQ
1. How is the PYUSD yield paid out?
- Daily accruals are paid monthly in PYUSD.
2. Can I withdraw PYUSD earnings as cash?
- Yes, PYUSD can be converted to cash or used for transactions.
3. How does PYUSD compare to USDT?
- PYUSD has a smaller market cap ($868M vs. USDT’s $143B) but offers yield opportunities.
4. Is PYUSD available outside the U.S.?
- Currently, the yield program is U.S.-only, but PYUSD can be purchased globally via MoonPay.
5. What backs PYUSD?
- USD reserves, Treasuries, and cash equivalents.
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