PayPal

PayPal is one of the first major U.S. fintech companies to launch its own regulated stablecoin, PYUSD, issued by Paxos and fully backed by U.S. dollar reserves. As of 2025, PayPal is expanding its crypto offerings to include earning interest on PYUSD balances, making it a serious contender in the emerging stablecoin savings space.

PayPal Stablecoin Earning Features

• Earn on PYUSD: U.S. users can now earn yield directly on PYUSD balances held within their PayPal accounts.
• No crypto experience required: Users don’t need a separate wallet or exchange account—earnings accrue automatically in the background.
• Regulatory compliance: PYUSD is issued under NYDFS oversight and PayPal operates under full U.S. financial regulation.
• Partnership with Paxos: Earnings are generated through Paxos-managed reserve operations, such as reverse repo and T-bill strategies.

Why It Matters

PayPal is leveraging its massive user base and trusted brand to normalize stablecoin use and introduce interest-bearing digital dollars to the mainstream. This positions PYUSD as one of the first stablecoins with a native yield available directly through a consumer-facing fintech app.

Ideal User

PYUSD earning is best suited for:

• Users looking for low-risk stablecoin yield
• People new to crypto who prefer a familiar platform
• Those who want dollar-backed digital savings with daily liquidity

As stablecoin interest accounts become more common, PayPal's native PYUSD yield feature sets a precedent for regulated, easy-to-use digital savings tools—bridging traditional fintech and crypto-native benefits.