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2w ago

PayPal Introduces 3.7% Yield on PYUSD as Coinbase Waives Fees to Boost Adoption

The initiatives aim to accelerate the use of PayPal's stablecoin in payments and DeFi, challenging market leaders USDT and USDC.

Smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
PayPal's headquarters (Shutterstock)
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Overview

  • PayPal will offer U.S. users a 3.7% annual yield on PYUSD balances starting this summer, paid monthly in PYUSD to encourage broader adoption.
  • Coinbase has waived fees on PYUSD transactions and enabled direct redemption for U.S. dollars to promote the stablecoin's use in payments.
  • PYUSD, launched in 2023 and backed by U.S. Treasury reserves, currently holds under 1% of the stablecoin market dominated by Tether's USDT and Circle's USDC.
  • PayPal and Coinbase plan to collaborate on promoting PYUSD for merchant settlement, cross-border payments, and decentralized finance applications.
  • The U.S. Congress is expected to pass stablecoin regulations by August 2025, further shaping the competitive landscape for digital currencies.