When PayPal joined the stablecoin wars in August 2023 with its dollar-backed PYUSD, the crypto industry celebrated the entrance of a TradFi company into a competitive arena dominated by crypto-native firms Tether and Circle. But a year after its launch, PYUSD is still lagging behind its competitors with a market capitalization of less than $1 billion, paling in comparison to Tether's $117 billion.
In a bid to increase adoption, PayPal is partnering with Anchorage Digital—the only U.S. crypto firm to hold a federal bank charter—to offer rewards to Anchorage Digital's user base of accredited investors who hold PYUSD at its U.S. bank, its Singapore subsidiary, or by means of its noncustodial wallet Porto.
