- PayPal has expanded its PYUSD stablecoin to the Arbitrum blockchain, joining Ethereum and Solana as supported networks to enhance transaction efficiency and accessibility.
- Alongside the expansion, PayPal launched a PYUSD Rewards Program offering daily yield to users holding at least 1 PYUSD in their Cryptocurrencies Hub, signaling a strategic push into DeFi and stablecoin adoption.
PayPal’s stablecoin PYUSD, which was launched back in 2023 is solidifying its footstep in the digital space. Notably, the stablecoin has expanded its presence across multiple blockchains with the most recent being Arbitrum. Additionally, PayPal has introduced a new reward program for its holders.
From the ground up, PYUSD was launched launched as an ERC-20 token on the Ethereum blockchain. More recently, in May 2024, PayPal also made PYUSD available on the Solana blockchain. Now, this year, the stablecoin is officially supported on Arbitrum, in addition to the exiting availabity on Ethereum and Solana networks.
This update significantly boosts PYUSD’s interoperability, positioning it to better serve a broader range of DeFi platforms, dApps, and retail users. Now the stablecoin currently boasts a marketcap of $844.46M.
The inclusion of Arbitrum, a leading Ethereum Layer 2 scaling solution, marks an important step for enhancing transaction efficiency and reducing fees for PYUSD users. These three networks are now designated as the “PYUSD supported blockchains”, expanding the stablecoin’s utility in a multi-chain environment.
In addition to the expansion, PayPal has launched the PYUSD Rewards Program, designed to incentivize users who hold the stablecoin within their Cryptocurrencies Hub. According to the payment giant, any user maintaining a balance of at least 1.0 PYUSD is eligible to earn daily rewards based on the PYUSD Rewards Rate, which is calculated as an annualized yield.
The reward amount is determined by applying a daily periodic rate, the annual rewards rate divided by 365, to the user’s average daily PYUSD balance. These accrued rewards are credited at the beginning of each month or within 30 days after month-start, giving users a passive income stream simply for holding their tokens.
Importantly, users have the freedom to opt out of the rewards program at any time, though opting out will pause the accrual of new rewards. To remain eligible, users must maintain an active Cryptocurrencies Hub account free of negative balances, fund holds, or account restrictions. Business account holders can also participate under the same eligibility terms.
While PayPal promotes PYUSD as a stable, yield-bearing digital asset, the company underscores that the token is issued by Paxos, and therefore subject to Paxos’ terms and compliance protocols. PayPal also retains the right to terminate support for PYUSD at its discretion, with or without prior notice. If support is terminated, users will need to sell or transfer PYUSD to an external wallet.
