PayPal will begin offering a 3.7% annual yield on its stablecoin, PayPal USD (PYUSD), for U.S. users starting this summer.
The rewards won’t be solely funded by interest generated from the reserves backing PYUSD, allowing PayPal more flexibility than other stablecoins tied to Treasury yields. Fernandez da Ponte also noted that the return offered through the program is not dependent on Federal Reserve rates.
PayPal continues to expand its crypto-related services. In April, the company added support for Chainlink (LINK) and Solana (SOL). PYUSD has also been used for cross-border settlements through Xoom, and the company is working to integrate it further into its global payment systems.
Other financial technology companies like Robinhood, Revolut, Stripe, and Fidelity are exploring or developing their own stablecoin products. Coinbase already offers yield on USDC, and Circle recently launched a new network to support stablecoin-based international payments.
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