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Stablecoin Issuers Eye New Ways to Reward Users in Booming Market

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Stablecoin issuers are increasingly offering yield to users in a bid to compete in the growing market, while PayPal focuses on building a payments-focused stablecoin.

Stablecoin Issuers Eye New Ways to Reward Users in Booming Market
Photo: CoinWire Japan/Unsplash

Stablecoins are looking to attract users by offering a share of the profits they generate. This new strategy comes amid a surge in the stablecoin market, estimated to be worth trillions of dollars.

Traditionally, stablecoin issuers profited from the interest earned on assets backing their tokens, but didn’t share any of that with users. Now, with competition heating up, companies are looking at ways to distribute those profits.

One approach is offering yield on stablecoin holdings. This has the potential to disrupt the dominance of established players like Tether (USDT) and Circle (USDC) who don’t currently offer such benefits.

However, not all stablecoin issuers are jumping on the yield bandwagon. PayPal, for example, is focusing on building a fast and efficient payment system with its PYUSD token, even if it means sacrificing some yield potential.

The coming years are likely to see a diversification of stablecoin offerings, catering to different user needs – some prioritizing yield, others prioritizing fast and cheap payments.

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We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Alistair Cunningham is a British-born author with a focus on the emerging technologies shaping the future of finance. His expertise lies in cryptocurrency, artificial intelligence (AI), trading strategies, and blockchain technology. Alistair brings a deep understanding of how these areas converge to revolutionize financial systems. When he's not writing about the latest advancements, you might find him tinkering with code or exploring the potential of AI in creative applications.

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