Paypal Behemoth payments offer a 3.7% yield to the balances held at PayPal USD Stablecoin.
According to In an April 23 Bloomberg report, a Paypal representative said the proposal aimed at encouraging more stablecoin use of the company. The program is expected to be launched this time, and the rewards will also be paid to PayPal USD (PIUSD).
Users can exchange pyusd for Fiat Currency, spend or send it to other users. Rewards will be available daily and pay on a monthly basis. The company hopes that this feature will lead to a higher dominant stablecoin and crypto payments on its platform.
The report complies with PayPal USD Reaches a $ 1 billion market cap in Tag -Heart of 2024. As a publication, the Stablecoin market cap is about a quarter of less than $ 873.3 million.
Tzahi Kanza, CEO of Crypto Investment Firm Syndika, told Cointelegraph that “from a regulation of stance, Paypal must ensure that the offering of interest does not cause its stablecoin to be classified as a security.” When it comes to financial risks for users, he said Paypal could keep its promises, and the main risk loses peg to dollars than interest -related issues. He said:
“Stablecoins that do not offer yield are usually not considered security. However, yield-bearing stablecoins may fall under that classification.”
Related: PayPal’s Xoom launches cross-border Stablecoin settlement
PayPal has betting in crypto
Paypal has estimated Blockchain technology with the ongoing product development. Reports from earlier in April show that PayPal has expanded its cryptocurrency offerings To include chainlink (Link) and Solana (Sol).
In fact, PayPal is mentioned by Polygon Labs CEO Marc Boiron as One of the catalysts for the rapid growth of the stablecoin industry In recent years. In an interview with Cointelegraph, Biron said, “Companies like Stripe and PayPal integration of Stablecoins are likely to be the main catalyst for their growth.”
Related: Paypal, Ernst & Young Settle First Corporate Payment by Piusd Stablecoin
The Story of PayPal USD
PASUSD is a US dollar pegged stablecoin Issued Through the Paxos Trust Company on behalf of PayPal in August 2023. At the time of launch, PayPal became the first major payment network to launch its own Stablecoin, with Venmo’s support launched in September 2023.
Each token is purportedly supported one-to-one through cash deposits, short-term US treasury records and similar cash equivalent to accounts administered by the New York State Department of Financial Services. At first, Pausd was a token that follows the ERC-201 Ethereum standard, but has since been na -Deploy In Solana (Sol).
Paypal USD’s current market cap is still a big shout from Tether’s top Stablecoin, USDT (USDT). At the time of writing, coinmarketcap Data It is shown that the USDT market cap stands at $ 145.3 billion, more than 17,255% higher than Piusd’s. Kanza said “Tether’s strength lies in market dominance – not in compliance with regulation, transparency, or harvest” because it does not offer them. He added:
“To compete effectively, targeting these three places – compliance, transparency and return – will be a smart approach (for Paypal.)”
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