PayPal is planning to offer U.S. users a 3.7% annual yield on its PayPal USD (PYUSD) stablecoin, aiming to encourage wider adoption. According to a Bloomberg report, the program is expected to launch this summer and will allow users to earn rewards while holding PYUSD in their PayPal and Venmo wallets. The yield will accrue daily and be paid monthly in PYUSD.
Jose Fernandez da Ponte, PayPal's head of blockchain, has stated that the goal is to build new payment rails to reduce costs and improve speed. CEO Alex Chriss added that stablecoins offer a chance to reshape the economics of payments. PYUSD, launched in 2023, is issued by Paxos Trust and backed by reserves like U.S. Treasuries.
As of April 2025, PYUSD has a market capitalization of approximately $873 million. Earlier this month, PayPal added Chainlink (LINK) and Solana (SOL) to its list of supported cryptocurrencies, expanding its digital asset offerings.