PayPal and Anchorage Digital Launch Rewards Program for PYUSD Stablecoin Holders
Date: 2024-08-26 Author: Gabriel Deangelo Categories: BLOCKCHAIN
The program is designed for customers who use Anchorage or the Porto wallet to self-custody their PYUSD. According to the crypto bank, the stablecoin funds will remain available in the participants’ accounts, allowing them to be quickly used when needed. Importantly, the program does not involve risks associated with re-pledging, staking, or lending.
PYUSD is a stablecoin backed 1:1 to the US dollar and issued by Paxos Trust. The main goal of PYUSD is to compete with other popular stablecoins, such as Circle’s USD Coin. Among the key features of PYUSD is its compatibility with various developers, wallets, and web3 applications, which increases its usefulness and appeal in the digital economy.
Stablecoins like PYUSD are becoming increasingly popular in global financial transactions due to their programmability, ease of transfer, and self-custody capabilities, making them especially useful for international transfers.
Anchorage Digital, one of the leading digital asset custodians in the US, not only launched this rewards program, but also introduced Porto this year, a self-custody solution aimed at institutional clients such as venture capital funds and sovereign wealth funds. The growth of this sector is confirmed by the actions of other companies. For example, Coinbase offers about 5.2% annual interest on USDC through its institutional division. Fireblocks also recently received approval from the New York financial regulator to provide custody of assets to US clients.
In addition, the supply of PYUSD on the Solana blockchain recently exceeded that of Ethereum. This was made possible by the integration of PYUSD into decentralized exchanges such as Jupiter and Orca, where the token was added to liquidity pools. Thus, PYUSD has strengthened its position on Solana along with other leading stablecoins such as USDC and USDT.
On Solana, PYUSD has a “confidential transfers” feature that increases user privacy while maintaining transparency for regulators. The SPL token standard used on Solana also provides several benefits, including reduced development and testing costs, enterprise-ready integration, and increased flexibility.
It is worth noting that the stablecoin market, valued at $140 billion, remains unregulated. Last month, Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill aimed at regulating stablecoins. Under the proposal, stablecoin issuers would be required to comply with reserve and operational requirements, including the creation of subsidiaries specifically designed to issue such tokens.
