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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.
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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.
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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.
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Oleg Ogienko, the public face of A7A5, pitched the ruble-pegged stablecoin as a fast-growing trade rail built to move money across borders despite sanctions pressure.
What to know:
- Oleg Ogienko, the public face of ruble-denominated stablecoin issuer A7A5, insists the firm complies fully with Kyrgyz regulations and international anti-money-laundering standards despite extensive U.S. sanctions on its affiliates.
- A7A5, whose issuing entities and reserve bank are sanctioned by the U.S. Treasury, has grown faster than USDT and USDC and aims to handle more than 20 percent of Russia’s trade settlements, primarily serving businesses in Asia, Africa and South America trading with Russian partners.
- Ogienko said that he and his team were developing partnerships with blockchain platforms and exchanges during Consensus in Hong Kong, though declined to name specifics.
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