PayPal is throwing cash at customers to get them hooked on its stablecoin. The payments giant announced a juicy 3.7% annual yield for PYUSD holders, starting summer 2025. That’s a lot more than your grandma’s savings account – and PayPal knows it. The rewards accumulate daily and pay out monthly in PYUSD, which customers can convert to dollars, transfer around, or spend through PayPal’s massive merchant network.
It’s a bold move from a company that’s dead serious about grabbing its slice of the $239 billion stablecoin pie. Since launching in 2023, PYUSD has muscled its way to an $873 million market cap. Not bad, but still tiny compared to crypto heavyweights like Tether and USD Coin. With its parent companies controlling over $200 billion combined, these two giants dominate the stablecoin landscape.
PayPal’s not messing around though – they’ve got Paxos Trust Company backing PYUSD with actual U.S. Treasuries and reserves. The company’s getting cozy with crypto exchange Coinbase too. Their expanded partnership means zero fees for PYUSD trades on Coinbase’s platform. The stablecoin maintains 1:1 value with USD, ensuring stable purchasing power for users. These reserves undergo regular audits to confirm sufficient backing for stability.
It’s all part of PayPal’s master plan to make its stablecoin impossible to ignore in both traditional finance and the crypto wild west. The real kicker? PayPal’s planning to roll out PYUSD to 20 million businesses in 2025. That’s a lot of places to spend your fancy new digital dollars.
Businesses get perks too – faster settlements and lower costs compared to old-school payment methods. It’s like PayPal’s building its own financial ecosystem, one stablecoin at a time. But they’re not alone in this game. Former President Trump’s World Liberty Financial Inc. has jumped in with their USD1 stablecoin, and companies like Robin Markets and Revolut are eyeing the space.
Meanwhile, regulators worldwide are watching stablecoins like hawks. PayPal’s betting its squeaky-clean regulatory compliance and transparent backing will help PYUSD stand out in an increasingly crowded field. The race is on, and PayPal’s putting its money where its mouth is.
