PayPal is elevating its game in the realm of stablecoins by planning to provide U.S. users with 3.7% annual returns on balances held in its PayPal USD (PYUSD) stablecoin.

The yield, compounded daily and credited monthly, aims to incentivize users to adopt PYUSD, thus distinguishing it from its competitors, according to a Bloomberg report.

Set to roll out this summer, this initiative allows users to earn rewards while their stablecoins reside in PayPal and Venmo wallets. Users can utilize these stablecoins via PayPal Checkout, transfer them to others, or convert them into traditional currency.

“We are halfway in a 10-year journey,” said Jose Fernandez da Ponte, PayPal’s head of blockchain and digital currencies. The goal, he elaborated, is to develop a new framework for payments that lowers costs and enhances speed. CEO Alex Chriss echoed this perspective, indicating that stablecoins present an opportunity to transform the economic structure of the payment ecosystem.

Launched in 2023, PYUSD is issued by Paxos Trust and is underpinned by assets like U.S. Treasury securities. Despite the strong brand presence of PayPal, PYUSD’s market share remains modest — around $868 million, overshadowed by the market leader Tether with $143 billion USDT, as reported by RWA.xyz.

This move is a segment of PayPal’s ongoing expansion in the cryptocurrency domain. Earlier in April, the firm included chainlink (LINK) and solana (SOL) to its expanding lineup of supported cryptocurrencies.