PayPal Interest: PYUSD users in the US can enjoy an annual yield of 3.7%. How far is it from the leader stablecoin USDT?

Global payment giant PayPal (PYPL) announced yesterday (23) the launch of the PayPal USD (PYUSD) reward program, which will provide US users with a reward of 3.7% annualized yield for holding PYUSD stablecoins in PayPal or Venmo wallets. (Synopsis: PayPal uses PYUSD to complete the "first commercial payment", demonstrating the potential of stablecoins in B2B payments) (Background supplement: The European Central Bank "issued a red alert" on the expansion of US stablecoins, and a financial sovereignty war officially began) Global payment giant PayPal (PYPL) announced yesterday (23) that it launched a PayPal USD (PYUSD) reward program, which will provide US users with holding in PayPal or Venmo wallets PYUSD stablecoins are rewarded with a 3.7% annualized yield. PYUSD Rewards Program Details According to the press release, the PYUSD Rewards Program will be launched this summer and will be available to PayPal and Venmo personal account users, and the PYUSD balance held by the user will automatically generate rewards that can be used in a variety of scenarios, including: Millions of PayPal-enabled merchants around the world make payments; direct transfers to other PayPal or Venmo users; 1:1 conversion into fiat currencies such as US dollars; exchange into other cryptocurrencies; Transfer to a supported external wallet via the Ethereum or Solana blockchain. Incentives are business-friendly: PYUSDs, whether purchased or received, can be seamlessly used for payments within the PayPal and Venmo ecosystems. Daily accrual, monthly distribution: The annualized reward rate of 3.7% ensures that users enjoy stable earnings, and the rewards will be automatically deposited into the cryptocurrency center every month in the form of PYUSD. Flexible participation: Users can opt in or out of the program at any time and quickly exchange PYUSD into USD in the cryptocurrency hub. Considerations Regional restrictions: Planned rollout may not be available to New York State users. Change in yield: 3.7% is the yield at the time of expected launch, PayPal reserves the right to adjust the yield at any time. Eligibility: Venmo personal account users only, Venmo youth account and business profile users are not eligible to participate. The current state of the stablecoin market at a glance PayPal The launch of the 3.7% annualized yield plan is obviously intended to attract more users to hold and use PYUSD through a reward mechanism to enhance its market competitiveness. After all, its current market is only about $870 million, which is far from USDT ($145 billion) by market capitalization or USDC issued by Circle ($62 billion). It is also worth mentioning that after Trump became the US president, the US regulatory authorities are actively promoting the development of stablecoins, and the US Congress is trying to establish a clear regulatory framework for stablecoins based on two core stablecoin-related bills, including: STABLE Act (Stablecoin Anchoring and Banking Enforcement Act): Proposed on February 6, 2025, it aims to establish a clear regulatory framework for dollar-linked payment stablecoins, emphasizing transparency and consumer protection. GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins): The full name is "Guiding and Establishing National Innovation for US Stablecoins", the Senate Banking Committee has passed by a vote of 18:6, compared to the STABLE Act, the GENIUS Act focuses more on preventing illegal activities. But more authority needs to be given to the Ministry of Finance to deal with illegal transactions on decentralized blockchains. If the bill passes smoothly, it can be seen that more traditional finance will enter the pie of the stablecoin market in the future. Related reports Italian Economy Minister: The potential impact of US stablecoins on Europe far exceeds tariffs, calling for the promotion of digital euro confrontation Three minutes to understand USDT0: Is Tether's cross-chain stablecoin reliable? What is USDi? Value anchored to U.S. CPI, can protect cash purchasing power? 〈PayPal Interest: PYUSD US users can enjoy an annualized return of 3.7%, how far is it from stablecoin leader USDT? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".