Payments giant PayPal is reportedly going to start offering customers yield on its proprietary stablecoin product.
According to a new report by Bloomberg, PayPay is planning on offering rewards to users of their stablecoin PayPal USD (PYUSD) as a means of increasing its usage.
The report says that the program is expected to launch sometime during the summer, though no specific date was mentioned, and would allow users of both PayPal and Venmo to earn 3.7% annually on PYUSD holdings in their crypto wallets.
The rewards – which accrue on a daily basis and get paid out monthly – will be paid in PYUSD which customers can then either convert to fiat currency, use for payments, or send to other users.
Jose Fernandez da Ponte, PayPal’s senior vice president and general manager of blockchain, crypto and digital currencies, told Bloomberg in an interview that the goal of the company is to incentivize use of stablecoins as a form of payment on its platform.
“We see stablecoins as building the next generation of payment rails but we are aware that is something that takes time. We are halfway [through] a 10-year journey.”
PYUSD launched in 2023 in collaboration with stablecoins issuer Paxos, which says that the token’s reserves are 100% held in US dollar deposits that are available for 1:1 redemption.
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