Anchorage Digital launches reward program for PYUSD holders amid $1B milestone News ▸ US ▸ Solana ▸ Stablecoins
Anchorage Digital launches reward program for PYUSD holders amid $1B milestone
PayPal PYUSD's adoption has soared following the stablecoin expansion to the Solana blockchain.
2 min read
Updated: Aug. 23, 2024 at 2:41 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Anchorage Digital, a leading institutional-grade crypto platform, has launched a reward program for institutional investors holding PYUSD on its platform or in its self-custody wallet Porto, according to an Aug. 22 statement.
The company announced that institutions using its services or Porto can now earn “competitive rewards” on their PYUSD holdings. Unlike other reward programs that involve rehypothecation, staking, or lending, Anchorage Digital’s program allows participants to earn rewards while keeping their assets fully accessible and segregated in their accounts for quick deployment.
The announcement hinted that while the program currently supports PYUSD, other stablecoins might be included in the future.
Anchorage Digital CEO Nathan McCauley stated that the program aligns with crypto innovators’ desire to generate returns on their treasury assets without compromising security or accessibility. He added:
“Anchorage Digital looks forward to working with crypto innovators — including protocols, foundations, VCs, and startups — to unlock the next phase of growth by supporting access to our stablecoin rewards program.”
PayPal’s General Manager of Blockchain, Crypto, and Digital Currency also commented that the initiative will expand PYUSD’s utility and benefit institutional users.
$1 billion milestone
This move comes as PayPal’s PYUSD is approaching a $1 billion market cap, driven by the strong adoption of the stablecoin on the Solana network.
PYUSD’s supply surged by around $400 million in the past month, representing a 60% increase. This growth has positioned PYUSD as the fastest-rising stablecoin, reaching $960 million as of press time, according to data from CryptoSlate.
DeFillama data further showed that most PYUSD is on the Solana blockchain, with $590 million on Solana compared to about $366 million on Ethereum.
Market observers have linked PYUSD’s success on Solana to the high yields offered by Solana-based DeFi protocols such as Drift. This platform provides users with substantial rewards, offering nearly 20% annual returns for those who deposit the stablecoin.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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PayPal USD is backed entirely by short-term US Treasuries, U.S.
Solana
$244.161
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Ethereum
$3,253.18
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.
Anchorage Digital
Anchorage Digital is a regulated cryptocurrency platform that offers integrated financial services and infrastructure solutions to institutions.