• PayPal collaborates with Anchorage Digital to offer interest rewards on PYUSD holdings.
• The initiative is meant for institutional investors who operate outside of US regulatory authority through a Cayman Islands firm.

PayPal is looking forward to many collaborations, including Adyen and UKG Pro, and is presently moving forward with its stablecoin plan by launching an interest incentives program for holders of its dollar-pegged PYUSD stablecoin. The project, in collaboration with Anchorage Digital, a U.S.-based crypto business with a bank charter, seeks to convince institutional investors to hold PYUSD via Anchorage’s services. 

This move is intended to enhance the adoption of the stablecoin, which has been unable to achieve substantial market momentum since its inception, with a market valuation of less than $1 billion.

Expanding PYUSD Adoption Amid Regulatory Uncertainty

Despite the market’s initial positive reaction, PYUSD trails industry leaders such as Tether, which has a market capitalization of more than $117 billion. The new rewards program, which pays interest on assets backing the stablecoin, including US Treasuries, is viewed as a smart move to increase PYUSD’s popularity.

The date of its launch coincides with current regulatory uncertainties regarding stablecoins in the United States. Anchorage Digital, on the other hand, has designed the rewards program to operate beyond the reach of US banking regulators by utilizing a Cayman Islands-based business. This arrangement assures that the program is restricted to institutional investors and does not qualify as a securities offering.

PayPal’s Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies, Jose Fernandez da Ponte, stressed the significance of this partnership. He noted that the agreement is consistent with both organizations’ shared aim of providing safe payment options that optimize the value of digital assets while increasing PYUSD’s utility for institutional customers.

In parallel, PayPal has increased the utility of PYUSD by integrating it into the Solana network, allowing for faster and cheaper transactions. Furthermore, PayPal’s cross-border service, Xoom, now accepts PYUSD for fee-free international transfers and serves users in over 160 countries.

The post PayPal Teams Up with Anchorage to Launch Interest Rewards for PYUSD Holders appeared first on Live Bitcoin News.