PayPal to Offer 3.7% Yield on PYUSD to Increase Adoption
PayPal will offer US users a 3.7% annual yield on its dollar-backed stablecoin, PYUSD, starting this summer. The yield will be calculated daily and paid monthly without requiring users to lock their funds.
Key Details
- PYUSD launched in 2023 and is backed by reserves like US Treasuries, issued by Paxos Trust.
- Total circulation of PYUSD is about $868 million, compared to $145 billion for Tether’s USDT.
- PayPal aims to integrate PYUSD into 20 million businesses to increase adoption.
- This initiative aligns with PayPal's long-term strategy to enhance payment systems over the next ten years.
- PayPal is also expanding support for other cryptocurrencies, including Chainlink and Solana.
Regulatory developments are occurring globally, as South Korea’s Central Bank is focusing on establishing stablecoin legislation to strengthen their payment utility.