The post PayPal Launches Interest Rewards Program for PYUSD Stablecoin Holders appeared on BitcoinEthereumNews.com.

Since it is only available to institutional investors, it does not constitute a securities offering. The program’s incentives are structured such that they are not subject to oversight by U.S authorities. Holders of PayPal’s dollar-pegged PYUSD stablecoin will be eligible for an interest rewards program. Which is an advancement in the company’s stablecoin effort. The next stage in PayPal’s strategy to increase the use of its stablecoin is this program. This is a collaboration with Anchorage Digital. In a partnership with PayPal, the U.S. crypto business Anchorage Digital—which has a bank charter—will provide PYUSD investors with interest incentives. Since its launch, PYUSD has been sluggish to acquire market share. Thus, this step is an effort to speed up its use. Not Subject to Oversight by US Authorities The firm’s stablecoin has been well-received by investors. But it is still relatively small in comparison to industry heavyweights like Tether, whose market valuation is over $117 billion. Participating accredited investors may choose to keep their PYUSD in the bank, an offshore Singaporean corporation, or the non-custodial wallet Porto offered by Anchorage Digital. It will not be considered a marketing expenditure, and the profits will come from income generated on the underlying assets, namely US Treasuries. There is still a lot of ambiguity around stablecoins under US law. And the release of this PayPal rewards program seems to coincide with that. Federal courts have not always agreed with the SEC’s classification of some stablecoins as securities. Since it is only available to institutional investors, Anchorage Digital claims that its rewards program does not constitute a securities offering. Furthermore, the program’s incentives are structured such that they are not subject to oversight by financial authorities in the United States. In order to handle the payments, the corporation has established a Cayman Islands-based entity named…

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Filed under: News - @ August 23, 2024 12:24 am