- PayPal announces PYUSD rewards program, enhancing stablecoin value.
- Program offers 3.7% annual return for users.
- Aims to boost PYUSD adoption and usage globally.
PayPal Holdings Inc. plans to introduce its PYUSD stablecoin rewards program in the summer of 2025 for U.S. users, offering a 3.7% return.
PayPal launches its PYUSD program to enhance cryptocurrency’s role in commerce, reflecting a commitment to innovation and user engagement.
Program Details
The program offers a 3.7% annual return in PYUSD. Eligible users can earn this reward monthly. It is designed to increase adoption and utility of the stablecoin while ensuring market competitiveness.
Key executives like PayPal CEO Alex Chriss emphasize the potential for influencing global payments. The program encourages PYUSD use across various platforms, including Venmo, excluding New York at launch.
Market Impact and Regulation
The stablecoin market, led by established players like Tether, may see shifts with PayPal’s strategic involvement. PYUSD’s current circulation is approximately $873 million, a fraction of Tether’s $145 billion.
While innovation is emphasized, industry watchers are considering regulatory responses given PYUSD’s issuance by Paxos Trust. No new regulatory updates appeared at the announcement. Historical precedent suggests temporary impacts on user engagement and stablecoin reserves. Past stablecoin incentives have seen short-lived increases in liquidity and engagement.
Alex Chriss, President and CEO, PayPal, – “At PayPal, we believe stablecoins have the power to reshape the future of commerce as the foundation for the next generation of payments.”