PYUSD holders will receive rewards in the form of PayPal's own stablecoin.
At present, the marketcap of the PYUSD stands at $865.91 million (roughly Rs. 7,394 crore)
Photo Credit: PayPal
PayPal will start offering rewards to PYUSD stablecoin holders in a bid to boost its adoption and use in the coming months. Bloomberg was first to report on PayPal's plans, stating that PYUSD users will be able to earn 3.7 percent annually on their holdings once this initiative is rolled out. Later, PayPal CEO Alex Chriss confirmed the development on X (formerly known as Twitter). The US-based online payments giant launched its PYUSD stablecoin in 2023, pegged to the US dollar.
The rewards for PYUSD holders will be provided in the form of the stablecoin itself, Jose Fernandez da Ponte, the company's senior vice president and general manager of blockchain, told Bloomberg. These rewards will be paid to PYUSD holders on a monthly basis.
PayPal's CEO said that the company wants customers to experience the utility scope of stablecoins with the new rewards programme.
“Stablecoins have the power to reshape the future of commerce by combining innovation, stability, and accessibility. Now, we're making PayPal and Venmo the most rewarding way to hold PYUSD. With our new loyalty program, users on PayPal and Venmo will be able to earn rewards when they hold PYUSD within their accounts,” Chriss noted.
At present, the market cap of PYUSD stands at $865.91 million (roughly Rs. 7,394 crore) -- with over 866 million tokens in circulation, as per CoinMarketCap data.
This initiative is expected to increase PYUSD adoption for day-to-day expenditures as well as efficient cross-border transactions, Chriss said. The stablecoin regulations in the US are approaching final approval in the coming days – that will clarify the dos and don'ts for businesses engaging with these assets.
PayPal has been exploring the Web3 sector for the past few years. In 2022, the company established a six-member advisory council to research and analyse blockchain use cases aimed at enhancing its infrastructure.
The platform launched its crypto buying, selling, and holding feature for US-based business accounts in 2024, owing to user demand.
The company has yet to disclose a timeline for the rollout of its PYUSD rewards initiative.
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