PayPal is increasing the bet in the Stablecoin wars, since it is ready to start offering users of users a 3.7% annual returns on the balances of its Paypal USD Stablecoin (Pyusd).
The performance, accumulated daily and paid monthly in Pyusd, is designed to stimulate adoption by making the token more attractive and highlighted among the competition, Bloomberg reported.
Established to launch this summer, the program will allow users to obtain rewards while maintaining their stablecoins in Paypal and Venmo wallets. The stablecoin can be spent by paying of PayPal, transferred to other users or becoming traditional dollars.
“We are halfway on a 10 -year trip,” said José Fernández Da Ponte, head of Blockchain and PayPal digital coins. The objective, he added, is to build a new set of payment rails that reduce costs and improve speed. The CEO Alex Chriss echoed the point, saying that Stablecoins offers the opportunity to remodel the economy of the payment panorama.
Run in 2023, Pyusd is issued by Paxos Trust and backed by reserves such as US Treasures. Despite the recognition of the PayPal brand, the Pyusd market share remains small, around $ 868 million, compared to the $ 143 billion USDT of the market leader of the market market, according to RWA.XYZ data.
The movement is also part of the impulse of cryptocurrencies in the process of PayPal. Earlier this month, the firm added Chainlink (Link) and Solana (Sun) to its growing list of compatible cryptocurrencies.
