Payments giant PayPal is reportedly preparing to introduce a yield-generating feature for users of its proprietary stablecoin, PayPal USD (PYUSD). This strategic move aims to enhance the adoption and utility of its crypto offerings.
According to a report by Bloomberg, PayPal plans to offer an annual yield of 3.7% on PYUSD holdings held in crypto wallets across its platforms, including PayPal and Venmo. The program is expected to launch this summer, though no specific date has been disclosed.
Users will accrue rewards daily and receive payouts monthly in PYUSD. These earnings can be converted to fiat currency, used for payments, or transferred to other users, providing flexibility and encouraging engagement with the stablecoin.
In an interview with Bloomberg, JOSE FERNANDEZ DA PONTE, Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies at PayPal, emphasized the company’s long-term vision for stablecoins as a transformative payment solution. He stated, “We see stablecoins as building the next generation of payment rails, but we are aware that is something that takes time. We are halfway [through] a 10-year journey.”
PYUSD, launched in 2023 in collaboration with stablecoin issuer Paxos, is backed 100% by U.S. dollar deposits, ensuring 1:1 redemption for users. This initiative underscores PayPal’s commitment to bridging the gap between traditional finance and the digital asset ecosystem.
Sources: Bloomberg, Paxos