PayPal Introduces 3.7% Return on PYUSD to Spark Massive Adoption
- PayPal will offer a 3.7% annual return on PYUSD, starting summer 2025, to boost native coin adoption among U.S. users, with daily and monthly payouts in the same coin.
- PYUSD was launched in 2023; its backed by U.S. dollars and now runs on both Ethereum and Solana for efficient, faster, and cheaper use.
PayPal plans to offer a 3.7% annual return on its stablecoin, PYUSD, in a move to draw more users and gain solid ground in a market already led by stronger competitors. The goal is to engage users and drive wider adoption. The returns will be paid monthly in PYUSD.
According to a report covered by Bloomberg on April 23, PayPal plans to launch the new program this summer to boost the use of its native token, PYUSD. Basically, people in the U.S. who keep PYUSD in their PayPal or Venmo wallets will earn a 3.7% return, paid monthly in the same coin.
The return will build up daily, and users can choose to either spend, send, convert, or use it for international transfers. PayPals blockchain leader, Jose Fernandez da Ponte, said that the reward is meant to make PYUSD a true payment option. He also mentioned that the company is only halfway through their long-term 10-year plan.
The Growth and Backing of Paypal Native Token
PayPal first released its native token, PYUSD, in 2023 through Paxos, making it the first major financial firm to launch stablecoin options. The coin is supported one-to-one by U.S. cash, Treasury bills, and other similar safe holdings, with all assets kept in accounts monitored by New Yorks financial regulator.
Paxos, a licensed crypto company, handles all its issuing processes. PYUSD was first launched on Ethereum using the ERC-20 format, but later on, it expanded to Solana for faster and lower-cost transactions. It competes with other stablecoins linked to the U.S. dollar, such as USDC from Circle. By August 2024, the market cap of PYUSD had grown to about $1 billion, with a 24-hour trading volume of $33.21 million.
source: coinmarketcap.com
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Text source: TronWeekly
