PayPal introduces 3.7% yield on stablecoin balances to boost payments activity

Close up of a woman's hand paying with her smartphone in a cafe, scan and pay a bill on a card machine making a quick and easy contactless payment. PayPal and Venmo users will soon be able to earn yield on their stablecoin holdings, the company said Wednesday. Customers will earn an annual interest rate of 3.7% beginning this summer. It will be paid in the PayPal USD stablecoin (PYUSD) on their holdings of the same token. The rewards will be available to use for transacting with other users on the platform, funding international transfers, exchanging dollars or other fiat currency or to make purchases with PayPal merchants. PayPal launched PYUSD in 2023, making it the first financial institution to launch a U.S. dollar-backed stablecoin. It now makes up less than 1% of the market, which is dominated primarily by Tether's' USDT (66% of market cap) and Circle's USDC (28%), according to CryptoQuant. The total market cap for stablecoins has grown 37% in the past year. Unlike bitcoin, e ... Read full article.