Anchorage Digital has unveiled a new rewards program specifically for institutional clients who custody PayPal USD stablecoins (PYUSD) through its platform. Announced on August 22, this initiative allows participants to earn rewards by holding PYUSD with Anchorage Digital or through its self-custody wallet called Porto.<\/p>\n
This marks the first time Anchorage Digital has offered such a program, which applies exclusively to clients who custody PYUSD. The announcement emphasized that these stablecoins remain fully accessible and segregated on-chain in participants’ accounts, allowing for swift deployment whenever needed. Unlike some other programs, this initiative offers rewards without involving activities like rehypothecation, staking, or lending.<\/p>\n
Introduced in 2023, PayPal’s USD stablecoin (PYUSD)<\/a> is fully backed by US dollars in a 1:1 ratio and is issued by the Paxos Trust Company, a US-regulated crypto custodian. PYUSD competes with other stablecoins such as USD Coin (USDC) from Circle Internet Financial. Stablecoins like PYUSD offer various advantages over traditional fiat currencies, including programmability, ease of transfer, and self-custody, making them particularly appealing for global remittances.<\/p>\n PayPal’s PYUSD is an ERC-20 token built on the Ethereum blockchain. According to PayPal’s February announcement, this stablecoin will be available to a growing network of external developers, wallets, and web3 applications. The widespread availability of PYUSD among the Ethereum community further underscores its appeal.<\/p>\n Coinbase, another prominent name in the institutional crypto custody space, also offers incentives to users holding stablecoins on its platform. Specifically, it provides an annual percentage yield (APY) of approximately 5.2% for USDC holdings. Coinbase holds an equity stake in Circle, further aligning its interests with the stablecoin issuer.<\/p>\n Anchorage Digital, a regulated digital asset custodia<\/a>n catering to institutional clients, introduced Porto in February. This self-custody solution is tailored for users such as venture capital funds and sovereign wealth funds. Porto’s launch reflects a growing demand for secure and accessible self-custody options within the institutional investment community.<\/p>\n Today, @Anchorage<\/a> Digital is pleased to introduce stablecoin rewards on @PayPal<\/a>’s PYUSD.<\/p>\n Earn competitive rewards on PYUSD balances in our secure custody or in our institutional self-custody wallet, Porto.<\/p>\n Learn more ⬇️:https:\/\/t.co\/LtcmXRgnCh<\/a> pic.twitter.com\/0ZyoJSvAkp<\/a><\/p>\n — Anchorage Digital (@Anchorage) August 22, 2024<\/a><\/p><\/blockquote>\n\n