PayPal announces a new program for its users in the United States, offering an annual return of 3.7% on PayPal USD (PYUSD) stablecoin balances. Set to launch during the summer, this program allows users to earn rewards on stablecoin balances held in both PayPal and Venmo wallets.
New Attraction with Annual Returns on Stablecoins
Under this program, accrued returns will be calculated daily and transferred to users on a monthly basis. Users holding PYUSD balances will not only earn passive income but will also have the flexibility to use these stablecoins for purchases, transfer to other accounts, or convert into cash. PayPal describes this model as a means to encourage the integration of digital assets into everyday use.
This financial return model stands out, particularly appealing to the unbanked sectors. Given the current market conditions, where fixed-income digital assets are scarce, interest in PYUSD may increase. Nevertheless, despite this potential, PYUSD continues to lag behind market giants like Tether in terms of volume and adoption.
Launched in 2023 by Paxos Trust, PYUSD is backed by reserves such as U.S. Treasury bonds. PayPal’s reserve-based approach aims to provide users with a secure digital value storage option.
Strategic Depth in Digital Payments
PayPal’s roadmap for digital assets encompasses not just a technical but also a strategic perspective. The company’s director of blockchain and digital currencies, Jose Fernandez da Ponte, emphasizes that they are in the middle of the process, aiming to reduce transaction costs and enhance speed.
Similarly, CEO Alex Chriss underscores the potential of stablecoins to transform global payment systems. This vision reveals PayPal’s intention to be not just a technology provider but also an actor that reshapes financial systems.
Recently, PayPal has also integrated with networks like Chainlink $14 and Solana $148 , continuing to expand its digital asset portfolio. These moves demonstrate the company’s active role not only in the stablecoin sector but also in broader blockchain-based financial applications.
With the new program, users will engage not only as a payment tool but also with a value-appreciating digital asset. Making stablecoins more attractive for everyday use could spark a wave of transformation across the industry, benefiting not just PayPal but the sector as a whole.
