Payments giant PayPal is reportedly going to start offering customers yield on its proprietary stablecoin product.

According to a new report by Bloomberg, PayPay is planning on offering rewards to users of their stablecoin PayPal USD (PYUSD) as a means of increasing its usage.

The report says that the program is expected to launch sometime during the summer, though no specific date was mentioned, and would allow users of both PayPal and Venmo to earn 3.7% annually on PYUSD holdings in their crypto wallets.

The rewards – which accrue on a daily basis and get paid out monthly – will be paid in PYUSD which customers can then either convert to fiat currency, use for payments, or send to other users.

Jose Fernandez da Ponte, PayPal’s senior vice president and general manager of blockchain, crypto and digital currencies, told Bloomberg in an interview that the goal of the company is to incentivize use of stablecoins as a form of payment on its platform.

“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 stablecoins issuer Paxos, which says that the token’s reserves are 100% held in US dollar deposits that are available for 1:1 redemption.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post PayPal To Begin Offering Yield on PYUSD To Boost Stablecoin Use: Report appeared first on The Daily Hodl.

Payments giant PayPal is reportedly going to start offering customers yield on its proprietary stablecoin product.

According to a new report by Bloomberg, PayPay is planning on offering rewards to users of their stablecoin PayPal USD (PYUSD) as a means of increasing its usage.

The report says that the program is expected to launch sometime during the summer, though no specific date was mentioned, and would allow users of both PayPal and Venmo to earn 3.7% annually on PYUSD holdings in their crypto wallets.

The rewards – which accrue on a daily basis and get paid out monthly – will be paid in PYUSD which customers can then either convert to fiat currency, use for payments, or send to other users.

Jose Fernandez da Ponte, PayPal’s senior vice president and general manager of blockchain, crypto and digital currencies, told Bloomberg in an interview that the goal of the company is to incentivize use of stablecoins as a form of payment on its platform.

“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 stablecoins issuer Paxos, which says that the token’s reserves are 100% held in US dollar deposits that are available for 1:1 redemption.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post PayPal To Begin Offering Yield on PYUSD To Boost Stablecoin Use: Report appeared first on The Daily Hodl.