Anchorage Digital, the crypto platform for institutions, is pleased to announce its first stablecoin rewards program, enabling institutions to earn competitive rewards on PayPal USD (PYUSD) balances held at Anchorage Digital or in our recently launched institutional self-custody wallet, Porto.
PYUSD remains fully accessible and segregated in participants’ accounts on-chain for quick deployment “leveraging Anchorage Digital’s security model.”
Importantly, this program presents “a way to earn rewards without rehypothecation, staking, or lending involved.”
Nathan McCauley, CEO and Co-Founder of Anchorage Digital said:
“Crypto innovators want to put their treasury cash to work but cannot compromise on asset security or accessibility. That’s why Anchorage Digital is proud to work with PayPal, a publicly-traded company with a proven track record in crypto innovation to launch Anchorage Digital’s stablecoin rewards program featuring PYUSD. Anchorage Digital looks forward to working with crypto innovators—including protocols, foundations, VCs, and startups—to unlock the next phase of growth by supporting access to our stablecoin rewards program.”
Jose Fernandez da Ponte, Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies at PayPal
“Anchorage Digital and PayPal share a common vision of providing secure and efficient payment solutions for institutions that maximize the value of their digital assets and expand PYUSD’s utility and benefits for institutional customers.”
Institutions can enroll with Anchorage Digital to enjoy benefits, including:
- Streamlined onboarding: No need for dual onboarding to multiple providers or issuers
Integrated experience: Seamlessly hold PYUSD within the platform - Secure custody: Safeguard assets in segregated, on-chain vaults from a proven security architecture when institutions custody with Anchorage Digital Bank or Anchorage Digital Singapore
- Rewards from self-custody: Easily earn rewards from Anchorage Digital for PYUSD held in a Porto institutional self-custody wallet, the first institutional self-custody wallet to offer users rewards
- Segregated accounts: Institutional assets are always held in separate, on-chain accounts
- 24/7/365 access and transparency: Stablecoins and rewards are kept on-chain for 24/7/365 access and full transparency
- Portability: Stablecoin assets remain transferable
- Choice: Diversify beyond traditional finance rails streamlined with Anchorage Digital infrastructure
Anchorage Digital’s rewards program is “a major unlock for institutions often operating between various cryptocurrencies and using stablecoins.”
This program may be a good fit for “any institution holding qualifying stablecoins, starting with PYUSD.”
As noted in the update, PayPal USD is issued “by Paxos Trust Company, LLC, a fully licensed limited purpose trust company subject to regulatory oversight by the New York State Department of Financial Services.”
Reserves for PayPal USD are “fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal at a rate of $1.00 per PayPal USD.”
This Stablecoin Rewards Program is offered by Anchorage Digital Neo, Ltd.
Stablecoins must be held “with custody or wallet platforms offered by Anchorage Digital Bank National Association, Anchorage Digital Singapore Pte, Ltd., or Anchorage Innovations, LLC, in order to be eligible for rewards.”
This program is not offered by any “of the aforementioned custody or wallet service providers.”