PayPal will introduce PYUSD in 2023, as an ERC-20 Token on the Ethereum Blockchain.
PayPal and Anchorage Digital have partnered to offer a rewards program exclusively for PayPal users who hold the USD stablecoin PYUSD.
This initiative is available to all clients who store their PYUSD in Anchorage or Porto’s institutional self-custody wallet.
The crypto bank announced in an announcement that “PYUSD is fully accessible and segregated on the chain in participant’s accounts for quick deployment.”
“Importantly this program offers a way for players to earn rewards that does not involve rehypothecation or staking.
The PYUSD is backed 1:1 by US Dollars
PayPal introduced PYUSD in 2023, as an ERC-20 Token on the Ethereum Blockchain, backed by US Dollars and issued by Paxos Trust Company.
The USD Coin, from Circle Internet Financial, is a prominent stablecoin that uses the dollar as its backing.
PYUSD’s integration with external developers, wallets and web3 apps is one of its key attributes, increasing its utility and appeal within the digital economy.
Due to their programability, easy transfer and self-custody option, stablecoins such as PYUSD have become increasingly popular in global financial transactions. They are especially beneficial for international remittances.
Anchorage Digital is leading the US in the emergence of regulated custodians for digital assets.
Anchorage launched not only this rewards program, but also Porto earlier this summer. This self-custody option is aimed at institution clients like venture funds and sovereign funds.
Today, @Anchorage Digital is pleased to introduce stablecoin rewards on @PayPal’s PYUSD.
Earn competitive rewards on PYUSD balances in our secure custody or in our institutional self-custody wallet, Porto.
Learn more ⬇️:https://t.co/LtcmXRgnCh pic.twitter.com/0ZyoJSvAkp— Anchorage Digital (@Anchorage) August 22, 2024
The growth of this sector is also reflected in other institutions.
Coinbase, for example, offers a 5.2% annual return on USDC held through its institutional custody division.
Fireblocks has also recently received approval from New York’s financial regulator for the custody of assets for US customers.
Nathan McCauley said, CEO of Anchorage Digital: “Crypto-innovators are eager to leverage their Treasury cash, but they must do so without compromising security or accessibility.
PayPal’s Stablecoin Supply On Solana Surpasses Ethereum
According to reports, the supply of PayPal’s PYUSD on Solana has surpassed on Ethereum.
PYUSD’s growth on Solana is fueled by the integration of PYUSD into decentralized exchanges such as Jupiter and Orca where PYUSD liquidity pools have been added.
The expansion helped PYUSD establish an important presence on Solana alongside stablecoins like USDC and USDT.
PayPal’s PYUSD on the Solana Blockchain includes a feature referred to as “confidential transfer.
This feature is designed to enhance privacy for users, while maintaining transparency in regulatory matters.
Solana’s token extension standard that complies with SPL’s token standard provides PYUSD with several benefits, including confidential transfers.
It includes reduced development efforts, enterprise-ready features that are easily integrated and increased flexibility.
The stablecoin market is unregulated, and currently worth over 140 billion dollars.
Last month, Senators Cynthia Lummis (left) and Kirsten Gilibrand (right) joined forces to introduce a bill that regulates stablecoins.
The proposed legislation would require stablecoin payment issuers to meet certain operational and reserve requirements, which includes the creation of subsidiaries that are dedicated to stablecoin issuance.
