PayPal to Provide 3.7% APY on PYUSD Stablecoin to Incentivize More Use
Author: Francisco Rodriguez | Edited by: Parikshit Mishra Updated: April 23, 2025, 2:52 PM Published: April 23, 2025, 12:18 PM
PayPal is stepping up its position in the stablecoin battles, preparing to offer US users a 3.7% annual yield on PayPal USD (PYUSD) stablecoin balances.
According to a Bloomberg report, the daily accrual and monthly payout of PYUSD yield is intended to increase its appeal and drive adoption, making the token stand out from its competitors.
The program, scheduled for this summer, will allow users to earn rewards by storing their stablecoins in PayPal and Venmo wallets. The stablecoins can be used for purchases through PayPal Checkout, transferred to other users, or converted into regular dollars.
“We’re halfway through a 10-year journey,” said José Fernández da Ponte, PayPal’s head of blockchain and digital currencies. The goal, he said, is to create a new set of payment systems that will reduce costs and increase speed. CEO Alex Chriss echoed that sentiment, saying stablecoins offer the potential to transform the economics of the payments sector.
Launched in 2023, PYUSD is issued by Paxos Trust and backed by reserves such as U.S. Treasuries. Despite PayPal’s brand recognition, PYUSD’s market share remains small — about $868 million — compared to market leader Tether, which has $143 billion in USDT, according to data from RWA.xyz.
The move is also part of PayPal’s ongoing crypto push. Earlier this month, the company added chainlink (LINK) and solana (SOL) to its growing list of supported cryptocurrencies.
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