ANCHORAGE DIGITAL ADDS PAYPAL STABLECOIN YIELD TO CUSTODY PLATFORM

The world of institutional crypto custody just got a whole lot more interesting! Bridge, a global stablecoin payment network co-founded by former Square and Coinbase executives Zach Abrams and Sean Yu, has reportedly raised $58 million in funding. Bridge, which aims to developAnchorage Digital, a leading and trusted platform for institutions seeking to navigate the digital asset landscape, has announced its groundbreaking first stablecoin rewards program. 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)This initiative enables institutions to earn competitive rewards on their PayPal USD (PYUSD) holdings, whether those holdings are safely secured within Anchorage Digital's custody solutions or managed through their innovative institutional self-custody wallet, Porto.This move not only expands the functionality of Anchorage Digital’s platform but also provides a compelling incentive for institutions to embrace PYUSD and other stablecoins as part of their treasury management strategies.As the crypto industry strives for regulatory clarity, Anchorage is positioning itself as a forward-thinking provider, offering innovative solutions that operate within the existing framework.The rewards program is designed to be seamless, accessible, and, most importantly, secure, giving institutions the peace of mind they need to confidently participate in the evolving world of digital finance. As the crypto industry fights for clarity on stablecoin oversight, Anchorage insists that its novel program operates outside the jurisdiction of the SEC.This positions Anchorage Digital as a key player competing with other institutional custodians like Coinbase and Fidelity.

Anchorage Digital's Innovative Stablecoin Rewards Program

Anchorage Digital's move to offer rewards on PayPal USD (PYUSD) is significant for several reasons. Anchorage Digital has launched a rewards program for clients who custody PayPal USD stablecoins with the crypto custodian, according to an Aug. 22 announcement. The program is the first of its kind at Anchorage Digital and applies to clients who custody PayPal USD BITSTAMP:PYUSDUSD with Anchorage DFirstly, it provides institutions with a tangible benefit for holding PYUSD within their custody solutions.In a market often characterized by volatility, the opportunity to earn a yield on a stablecoin, pegged 1:1 to the US dollar, offers a degree of stability and predictable return. Today, Anchorage Digital, the trusted 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.This can be particularly attractive for institutions seeking to deploy capital in the digital asset space while minimizing risk.

Secondly, the program underscores Anchorage Digital's commitment to innovation and its proactive approach to meeting the evolving needs of its institutional clients.By offering a rewards program that encompasses both its custodial services and its self-custody wallet, Porto, Anchorage Digital provides institutions with flexibility and control over how they manage their digital assets. PayPal has partnered with Anchorage Digital to introduce a rewards program for clients holding PayPal s USD stablecoin (PYUSD). The initiative applies to clients who use Anchorage s services or the Porto institutional self-custody wallet to store their PYUSD holdings.This dual approach caters to a wide range of institutional preferences, from those seeking fully managed solutions to those who prefer to maintain greater autonomy over their holdings.

How the Program Works

The rewards program is designed to be simple and straightforward.Institutions that custody PayPal USD (PYUSD) with Anchorage Digital, or through their Porto self-custody wallet, are eligible to earn rewards. Related: Anchorage Digital adds PayPal stablecoin yield to custody platform. Bridge also collaborates with cryptocurrency firms, including the Stellar blockchain and the Bitcoin app Strike, toThere is no staking or complex procedures required; institutions simply need to hold their PYUSD within the designated custody solution to begin earning. Anchorage Digital introduces PayPal stablecoin yield program, enhancing its crypto custody platform. Competing with Coinbase, Anchorage Digital offers rewards on PYUSD without staking orSpecific details about the reward rates and distribution schedule are available to Anchorage Digital clients.

Benefits of Participating

Participating in Anchorage Digital's PYUSD rewards program offers several key benefits:

• Earn Competitive Rewards: Generate yield on stablecoin holdings without the complexities of staking or other DeFi activities.
• Enhanced Security: Benefit from Anchorage Digital's institutional-grade security and compliance infrastructure.
• Flexibility and Control: Choose between Anchorage Digital's custodial services or the Porto self-custody wallet.
• Streamlined Treasury Management: Integrate PYUSD into your treasury strategy with a predictable yield component.

PayPal's PYUSD and the Stablecoin Landscape

PayPal USD (PYUSD), launched in 2025 and issued by Paxos Trust Company, a US-regulated crypto custodian, is a significant addition to the stablecoin landscape. Related: Anchorage Digital adds PayPal stablecoin yield to custody platform Launched in 2025, PYUSD is backed 1:1 by US dollars and is issued by Paxos Trust Company, a US-regulated crypto custodian.Stablecoins, digital assets pegged to a stable reserve asset like the US dollar, play a crucial role in the crypto ecosystem by providing a stable unit of account and a means of transferring value efficiently. PYUSD, backed 1:1 by US dollars, aims to bring the benefits of stablecoins to a broader audience through PayPal's extensive user base and established infrastructure.

The Importance of Regulation in Stablecoins

The stablecoin market has faced scrutiny from regulators worldwide, as it's been deemed important for the stability and security of the digital asset ecosystem. Related: Anchorage Digital adds PayPal stablecoin yield to custody platform Launched in 2025, PYUSD is backed 1:1 by US dollars and is issued by Paxos Trust Company, a United States-regulatedConcerns have centered around the reserves backing stablecoins, the potential for illicit activities, and the overall impact on financial stability.As the industry evolves, regulatory clarity will be crucial for fostering innovation and ensuring responsible growth.Anchorage Digital has emphasized that its program operates outside the jurisdiction of the SEC, which is important for legal clarity.

Anchorage Digital, as a regulated custodian, plays a vital role in ensuring the safe and compliant handling of digital assets. Other institutional crypto companies including Coinbase Custody Trust, Fidelity Digital Asset Services and PayPal Digital are also similarly licensed. Crypto innovators want to put their treasury cash to work but cannot compromise on asset security or accessibility, Nathan McCauley, CEO Anchorage Digital, said in a statement.The company's commitment to regulatory compliance and its institutional-grade security infrastructure make it a trusted partner for institutions seeking to navigate the complexities of the crypto market. Yesterday custody and trading platform Anchorage Digital announced that holders of the PayPal USD (PYUSD) stablecoin can earn rewards. Anchorage Digital s new rewards program targets institutions that keep their stablecoins in the Anchorage Porto self-custody wallet.Other institutional crypto companies including Coinbase Custody Trust, Fidelity Digital Asset Services and PayPal Digital are also similarly licensed.

Porto: Institutional Self-Custody for the Modern Era

Anchorage Digital's Porto represents a significant advancement in institutional self-custody solutions.Porto allows institutions to maintain complete control over their digital assets while benefiting from Anchorage Digital's security expertise and infrastructure. Anchorage Digital has launched a rewards program for clients who custody PayPal USD (PYUSD) stablecoins with the crypto bank, according to an Aug. 22 announThis approach caters to institutions that prioritize self-sovereignty and desire greater autonomy over their asset management strategies. Anchorage Digital has launched a rewards program for clients who custody PayPal USD (PYUSD) stablecoins with the crypto bank, according to an Aug. 22 announcement.The new rewards program also targets institutions that keep their stablecoins in the Anchorage Porto self-custody wallet.It's another way to offer flexibility to Anchorage clients.

Key Features of Porto

• Unparalleled Security: Leverage Anchorage Digital's industry-leading security protocols to protect your digital assets.
• Complete Control: Maintain full control over your private keys and asset management decisions.
• Seamless Integration: Integrate Porto with your existing treasury management systems.
• Compliance-Ready: Benefit from Anchorage Digital's expertise in regulatory compliance.

With Porto, institutions can enjoy the benefits of self-custody without compromising on security or compliance.The platform offers a secure and intuitive interface, making it easy for institutions to manage their digital assets with confidence.

Why This Matters: The Institutional Adoption of Crypto

Anchorage Digital's PYUSD rewards program is a clear indication of the growing institutional adoption of crypto.As more institutions enter the digital asset space, the demand for secure and compliant custody solutions will continue to rise.This program is designed for crypto innovators that want to put their treasury cash to work but cannot compromise on asset security or accessibility.This is a key component of the program.

Institutions are increasingly recognizing the potential benefits of digital assets, including:

• Diversification: Add a new asset class to your portfolio.
• Enhanced Returns: Generate yield through staking, lending, and other DeFi activities.
• Improved Efficiency: Streamline payment processes and reduce transaction costs.
• Innovation: Explore new business models and opportunities in the digital economy.

However, institutional adoption of crypto also comes with unique challenges.Institutions require robust security measures, regulatory compliance, and institutional-grade infrastructure to manage their digital assets effectively.Anchorage Digital is committed to providing these solutions, enabling institutions to confidently participate in the crypto market.

Bridge's Role in the Stablecoin Ecosystem

While the focus is on Anchorage Digital and PYUSD, it's worth mentioning other players in the stablecoin ecosystem.Bridge, a global stablecoin payment network co-founded by former Square and Coinbase executives Zach Abrams and Sean Yu, has reportedly raised $58 million in funding.Bridge aims to develop interoperability and seamless transfers between different stablecoin networks, which can further drive the adoption of stablecoins like PYUSD.

Interoperability and the Future of Stablecoins

Interoperability, the ability for different blockchain networks to communicate and interact with each other, is crucial for the widespread adoption of stablecoins.As more stablecoins emerge and different blockchain platforms gain traction, the need for seamless interoperability will become increasingly important.Companies like Bridge are working to address this challenge, paving the way for a more connected and efficient stablecoin ecosystem.

Imagine a future where you can seamlessly transfer PYUSD from the Ethereum network to the Stellar network, or vice versa, without any friction or intermediaries.This is the vision that companies like Bridge are working towards, and it has the potential to unlock significant value for users and institutions alike.

Frequently Asked Questions (FAQs)

What is PayPal USD (PYUSD)?

PYUSD is a stablecoin issued by Paxos Trust Company and backed 1:1 by US dollars.It aims to bring the benefits of stablecoins to PayPal's extensive user base.

Who is Anchorage Digital?

Anchorage Digital is a leading crypto platform for institutions, providing secure and compliant custody solutions for digital assets.

What is the Porto self-custody wallet?

Porto is Anchorage Digital's institutional self-custody wallet, allowing institutions to maintain complete control over their digital assets while benefiting from Anchorage Digital's security expertise.

How does the PYUSD rewards program work?

Institutions that custody PYUSD with Anchorage Digital or through Porto are eligible to earn rewards.No staking or complex procedures are required.

Is Anchorage Digital regulated?

Yes, Anchorage Digital is a regulated custodian, committed to regulatory compliance and institutional-grade security.

Conclusion: Embracing the Future of Institutional Crypto

Anchorage Digital's introduction of PayPal stablecoin yield to its custody platform represents a significant step forward for the institutional adoption of crypto.By offering a compelling rewards program for PYUSD, Anchorage Digital is providing institutions with a tangible incentive to embrace stablecoins as part of their treasury management strategies.Coupled with the flexibility of choosing between traditional custody and the innovative Porto self-custody wallet, Anchorage Digital is empowering institutions with the tools and solutions they need to confidently navigate the evolving digital asset landscape.As the industry continues to mature and regulatory clarity emerges, expect to see even greater innovation and institutional participation in the crypto market.The key takeaways are:

• PYUSD rewards offer a stable yield in a volatile market.
• Anchorage Digital provides secure and compliant custody solutions.
• Porto empowers institutions with self-custody options.
• Institutional adoption of crypto is on the rise.

Ready to explore the benefits of Anchorage Digital's PYUSD rewards program?Contact Anchorage Digital today to learn more and discover how you can unlock the potential of digital assets for your institution.