In yet another sign of the online payment system’s embrace of the asset class, PayPal has announced a new partnership with crypto bank Anchorage Digital. Indeed, the collaboration will see PayPal attempt to increase the adoption of its PYUSD stablecoin, which debuted in August of last year.
Anchorage is the only United States-based crypto firm with a bank charter. Moreover, it is set to offer rewards for PYUSD holders. Since the stablecoin’s debut, it has been unable to truly compete with the market’s juggernauts. Tether and Circle remain atop the asset class.
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PayPal and Anchorage Partner to Increase PYUSD Adoption
The arrival of PYUSD was a massive moment for crypto. It showcased a traditional finance firm that made a notable entry into the digital asset space. The decision saw PayPal attempt to bring its notoriety and relevance to the cryptocurrency sector that would benefit both sides.
A year after its debut, it has not caught on as the payment firm had hoped. Its market cap is still under $1 billion. In comparison, Tether’s USDT sports a market cap of more than $117 billion. Yet, PayPal is hoping to change that through a new partnership with crypto bank Anchorage.
Also Read: PayPal’s PYUSD Stablecoin Officially Launches on Solana
The two sides are set to offer rewards to the bank’s user base. Specifically, Anchorage Digital’s accredited investors that hold PYUSD in the US, its Singapore-based subsidiary, or through its Porto wallet, will be able to earn rewards.
Anchorage Digital co-founder and CEO Nathan McCauley discussed the role the partnership will play in pushing the stablecoin forward. Specifically, he said it will aid institutional investors who want to hold the asset. “Ulitamltey, the goal here is to improve stablecoin adoption,” he told Fortune. It may be a key part in PayPal finally competing in a real way.