FC Porto Fan Token narxPORTO

The future of crypto currency

PayPal and Anchorage Digital are launching a new stablecoin reward program specifically for institutional investors. Announced on August 22, the program will provide returns for PayPal USD (PYUSD) tokens held in Anchorage Digital's custody solution. The plan is tailored for institutional clients, allowing them to earn profits from PYUSD tokens stored in Anchorage custody, including its self-custody wallet Porto. The plan prioritizes security by keeping stablecoins in on-chain accounts. Neither PayPal nor Anchorage will pledge or lend assets to create rewards anymore.

PayPal a digital payments platform is enhancing its stablecoin initiative by introducing an interest rewards program for holders of its dollar-pegged stablecoin, $PYUSD . This program, in partnership with a crypto firm, Anchorage Digital, aims to promote the use of $PYUSD , which has seen slow adoption since its introduction. The program offers interest rewards to accredited investors who hold $PYUSD through Anchorage Digital's bank, its Singapore-based entity, or the non-custodial wallet Porto. The rewards are derived from the interest earned from the underlying assets backing $PYUSD, especially US Treasuries, and will not be treated as a marketing expense. The launch of this rewards program coincides with ongoing regulatory uncertainty surrounding stablecoins. While some regulators have characterized certain stablecoins as securities, others have not. According to the company, Anchorage Digital's rewards program is not a securities offering because it is only limited to institutional investors. In addition to the rewards program, the digital payments platform has expanded the use of $PYUSD by incorporating it into the Solana network, its first move outside the Ethereum network. This integration enables cheaper and faster transactions, potentially serving millions of merchants worldwide. $PYUSD has a market capitalization of less than $1 billion, compared to other stablecoins like Tether, which has a market capitalization of over $117 billion. The stablecoin industry is growing, with various players developing their own stablecoins, such as Mercado Pago and MELI Dollar in Brazil, aiming to provide a stable currency for users, even in turbulent economic conditions.