Anchorage Digital, a leading crypto-native bank and regulated digital asset custodian, is now offering clients who custody PYUSD with the platform the opportunity to earn rewards. The rewards program aims to attract institutional clients by providing benefits that do not involve rehypothecation, staking, or lending.
This method guarantees that PYUSD remains fully accessible and segregated in participants’ on-chain accounts, enabling quick deployment while upholding stringent security standards.
PayPal USD (PYUSD) provides stablecoin backed by US dollars
Introduced by PayPal in February 2023, PYUSD is a stablecoin fully backed 1:1 by US dollars and issued by Paxos Trust Company, a regulated US crypto custodian. Competing with other widely-used dollar-backed stablecoins like Circle Internet Financial’s US Dollar Coin (USDC), PYUSD is an ERC-20 token on the Ethereum blockchain.
PYUSD offers advantages over fiat currency, including programmability, ease of transfer, and self-custody. It is especially popular for global remittances.
In a recent statement, Nathan McCauley, CEO of Anchorage Digital, emphasized the importance of security and accessibility for institutional clients managing their treasury assets. He said:
Crypto innovators want to put their treasury cash to work but cannot compromise on asset security or accessibility.
Nathan McCauley
Anchorage Digital’s Porto enhances self-custody options for institutions
Anchorage Digital’s Porto launched in February as a self-custody solution for venture and sovereign wealth funds users. This move comes as part of a broader trend of increasing institutional interest and regulation in cryptocurrency.
Fireblocks has also recently received approval from New York’s financial regulator to offer custody services. At the same time, other major players like Coinbase Custody Trust, Fidelity Digital Asset Services, and PayPal Digital are similarly licensed.
Since the launch of Spot Bitcoin ETFs, the need for segregated functions and professional-grade safeguards for assets has become a key priority. As a result, firms are leveraging their technology to enable clients and Registered Investment Advisors (RIAs) to comply with new rules by making custody arrangements easily accessible.
Source: https://www.cryptopolitan.com/anchorage-digital-launches-rewards-program/