PayPal is reportedly boosting its stablecoin, PayPal USD (PYUSD), by offering interest to users. This move aims to encourage more people to use the digital currency.
Interest Rates and Payment Details
According to Bloomberg, PayPal and Venmo users will soon be able to earn a 3.7% annual yield on their PYUSD holdings. The interest accrues daily and is paid out monthly. Users can then convert their PYUSD earnings to regular money, use it for payments, or send it to others. The program is expected to launch sometime this summer.
PayPal’s Long-Term Vision
PayPal’s senior vice president, Jose Fernandez da Ponte, explained that the company sees stablecoins as the future of payments. He stated that they’re in the midst of a long-term project, aiming to make stablecoins a more common payment method. He likened the current progress to being “halfway through a 10-year journey.”
PYUSD Background
Launched in 2023, PYUSD is backed by Paxos. Paxos assures that the stablecoin is fully backed by US dollar deposits, maintaining a 1:1 redemption rate.