TechFlow news, on August 22, according to Fortune, payments giant PayPal has partnered with Anchorage Digital, the only U.S. crypto firm holding a banking charter, to offer a PYUSD stablecoin rewards program for the latter's accredited investors. The initiative aims to boost adoption of PYUSD, which currently has a market cap of less than $1 billion, far below Tether's $117 billion.
Anchorage Digital co-founder and CEO Nathan McCauley said the rewards will be funded by yield from underlying assets, not marketing expenses. Despite unclear regulatory conditions, Anchorage Digital insists the program does not constitute a securities offering and falls outside the jurisdiction of banking regulators. However, the product remains in a regulatory gray area and lacks protections associated with traditional banking products, such as FDIC insurance.
