Share this article
PayPal to Pay 3.7% Annual Yield on Stablecoin PYUSD to Encourage Broader Use
The move is meant to increase adoption of PYUSD amid growing competition in the stablecoin market
Updated Apr 23, 2025, 2:52 p.m. Published Apr 23, 2025, 12:18 p.m.
What to know:
- PayPal is set to offer a 3.7% annual return on its PayPal USD (PYUSD) stablecoin to U.S. users, with yields accrued daily and paid monthly.
- The program, launching this summer, aims to increase adoption of PYUSD.
- The move is part of PayPal's broader push into cryptocurrency, with the company seeking to build new payment rails through the space.
PayPal is upping the ante in the stablecoin wars as it’s set to begin offering U.S. users 3.7% annual returns on balances of its PayPal USD (PYUSD) stablecoin.
The yield, accrued daily and paid monthly in PYUSD, is designed to spur adoption by making the token more appealing and stand out among the competition, Bloomberg reported.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Set to launch this summer, the program will allow users to earn rewards while keeping their stablecoins in PayPal and Venmo wallets. The stablecoin can be spent via PayPal Checkout, transferred to other users, or converted to traditional dollars.
“We are halfway in a 10-year journey,” said Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies. The aim, he added, is to build a new set of payment rails that reduce costs and improve speed. CEO Alex Chriss echoed the point, saying stablecoins offer a chance to reshape the economics of the payment landscape.
Launched in 2023, PYUSD is issued by Paxos Trust and backed by reserves like U.S. Treasuries. Despite PayPal’s brand recognition, PYUSD’s market share remains small — about $868 million — compared to market leader Tether’s $143 billion USDT, according to RWA.xyz data.
The move is also part of PayPal’s ongoing cryptocurrency push. Earlier this month, the firm added chainlink and solana to its growing list of supported cryptocurrencies.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bitcoin Faces Japan Rate Hike: Debunking The Yen Carry Trade Unwind Alarms, Real Risk Elsewhere
Speculators maintain net bullish positions in the yen, limiting scope for sudden JPY strength and mass carry unwind.
What to know:
- Impending BOJ rate hike largely priced in; Japanese bond yields near multi-decade highs.
- Speculators maintain net bullish positions in the yen, limiting scope for sudden yen strength.
- BOJ tightening may contribute to sustained upward pressure on global yields, impacting risk sentiment.
Top Stories
