Behemot PayPal plans to offer 3.7% of profits from the balance stored in PayPal USD Stablecoin.
According to The Bloomberg report of April 23 PayPal said that the measure aims to encourage the company’s more utilize to utilize. The program is to start this summer, and the prizes will also be paid at PayPal USD (Pyusd).
Users will be able to exchange Pyusd for Fiduat currency, spend it or send it to other users. The prizes will be calculated every day and will be paid monthly. The company hopes that this function will lead to a higher advantage of Stablecoin and Crypto on its platform.
The report takes place after PayPal USD, reaching market capitalization of $ 1 billion in the summer of 2024. In relation to the publication, the market capitalization of Stablecoin is almost a quarter lower at USD 873.3 million.
Tzahi Kanza, general director of Crypto Investment, Syndika, told Cointelegraph that “from the regulatory point of view PayPal must ensure that interest offering does not mean that his Stablecoin is classified as security.” When it comes to financial risk for users, he said that PayPal can maintain his promises, and the main risk is classified by the main risk Dollara said:
“Stablecouins, which do not offer performance, are generally not considered securities. However, stableleins containing performance may be subject to this classification.”
Related: Xoom PayPal launches the cross -border settlement of Stablecoin
PayPal plays crypto
PayPal bet on blockchain technology with continuous development of the product. Reports from earlier April show that PayPal has expanded its offer of cryptocurrencies with a chain (LINK) and Solana (SOL), giving American users the opportunity to buy, sell and send popular tokens.
In fact, PayPal was cited by the general director of Polygon Labs, Marc Boiron as one of the catalysts of the rapid growth of the Stablecoin industry in recent years. In an interview with Cointelegraph Boiron, he said: “Companies such as Stripe and PayPal integrating stablecoins are probably the main catalyst for their development.”
Related: PayPal, Ernst & Juvenile Setting First Corporate Pairer via Pyusd Stablecoin
History of PayPal USD
Pyusd to Stablelecoin with hygiene in dollars released By Paxos Trust Company on behalf of PayPal in August 2023. At the time of the premiere, PayPal became the first gigantic payment network that launched its own Stablecoin, and Venmo introduces support in September 2023.
Each token is allegedly supported by one to one by cash deposits, compact -term tax banknotes in the USA and similar cash equivalent acts on accounts supervised by the Department of Financial Services of Modern York. Initially, Pyusd was a symbolic in accordance with the ERC-20 Ethereum standard, but since then he was also implemented on Solanu (SOL).
The current market capitalization of PayPal USD is still far from the best Stablecoin, USDT (USDT) Tether. At the time of writing coinmarketcap data It shows that USDT market capitalization is $ 145.3 billion, over $ 17 255% higher than Pyusd. Kanza said that “Tether’s strength lies in its market dominance – not in regulatory compliance, transparency or efficiency” because it does not offer them. He added:
“To compete effectively, focus on these three areas – compatibility, transparency and phrases – would be an intelligent strategy [for PayPal.]”
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