Anchorage Digital has introduced a rewards program for clients who hold PayPal USD stablecoins with the crypto bank, as announced on August 22.
This program is Anchorage’s first of its kind and is available to clients who custody PayPal USD (PYUSD) either with Anchorage or through its institutional self-custody wallet, Porto. According to the announcement, the PYUSD remains fully accessible and segregated in participants’ accounts on-chain, allowing for quick deployment. Notably, the program offers a way to earn rewards without involving rehypothecation, staking, or lending.
PayPal launched PYUSD in 2023, a stablecoin backed 1:1 by US dollars and issued by Paxos Trust Company, a US-regulated crypto custodian. PYUSD competes with other dollar-backed stablecoins like Circle’s USD Coin (USDC) and offers advantages over fiat currency, such as programmability, ease of transfer, and self-custody, making it popular for global remittances.
PayPal highlighted that, as an ERC-20 token on the Ethereum blockchain, PYUSD will be accessible to a large and growing community of external developers, wallets and web3 applications.
Anchorage, a regulated digital asset custodian for institutional clients, launched Porto in February as a self-custody solution for entities such as venture funds and sovereign wealth funds. The U.S. is seeing an increase in regulated digital asset custodians like Anchorage.
Read more: CryptoQuant Reports Sharp Decline in Bitcoin Exchange Inflow for August
In August, Fireblocks, known for its self-custodied treasury management products, received approval from New York’s financial regulator to custody assets for U.S. clients. Other institutional crypto companies, including Coinbase Custody Trust, Fidelity Digital Asset Services and PayPal Digital, hold similar licenses.
“Crypto innovators want to put their treasury cash to work without compromising on asset security or accessibility,” said Nathan McCauley, CEO of Anchorage Digital.
Cre: cointelegraph.
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