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PayPal has announced a partnership with the cryptocurrency bank Anchorage Digital, aimed at boosting the use of the PYUSD stablecoin, which was launched last August.
Anchorage, the only U.S. cryptocurrency company with a banking license, is expected to offer rewards to PYUSD holders. However, PYUSD has yet to compete with major players like Tether and Circle.
BOOSTING THE USE OF PYUSD
The launch of PYUSD marks PayPal’s entry into the cryptocurrency space, reflecting the influence of traditional financial companies in the digital asset space.
After a year since its launch, PYUSD has not met expectations with a market cap under $1 billion, while Tether’s USDT exceeds $117 billion. PayPal hopes to change this through its partnership with the cryptocurrency bank Anchorage.
The two parties are expected to offer rewards to banking customers, including Anchorage Digital investors and PYUSD holders in the U.S, Singapore, or through the Porto wallet.
Nathan McCauley, CEO of Anchorage Digital, discussed the role of this partnership in promoting the stablecoin and supporting institutional investors holding this asset. He stated that the ultimate goal is to improve stablecoin usage, which could help PayPal compete more effectively.
