On Aug 22, PayPal and crypto custodian Anchorage Digital announced a new partnership, introducing a stablecoin rewards program focused on PayPal USD (PYUSD).
The program is designed for institutional investors and offers them a way to earn interest on their PYUSD holdings without taking on risks like staking or lending.
The stablecoins will be securely held in on-chain accounts, ensuring that neither Anchorage nor PayPal loans out customers’ assets to fund the rewards. According to the announcement, the main target of this program is Anchorage’s accredited institutional clients.
Moreover, this rewards initiative comes as PayPal’s stablecoin sees steady growth, with its supply increasing by over 60% in the past month. PYUSD recently overtook another popular stablecoin, USDD, becoming the sixth-largest stablecoin by market value.
Anchorage’s CEO, Nathan McCauley, believes this program could encourage more institutions to use stablecoins and bridge the gap between traditional finance and digital assets.
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