PayPal has recently expanded its stablecoin, PYUSD, to the Arbitrum network, marking a significant milestone in the company’s cryptocurrency journey. This move comes just a few months after the stablecoin’s initial launch on Ethereum and Solana. Alongside this expansion, PayPal has introduced a new rewards program for PYUSD holders, further enhancing the utility of the stablecoin.
PayPal Expands PYUSD to Arbitrum
PayPal’s Paxos-backed PYUSD stablecoin is now available on Arbitrum, joining Ethereum and Solana as supported blockchains. This expansion provides users with more options to engage with the stablecoin, making it more accessible across various blockchain ecosystems.
Arbitrum’s inclusion allows PayPal to tap into the growing Ethereum Layer 2 network, known for its scalability and low transaction fees. This move comes at a time when blockchain interoperability is crucial, positioning PYUSD as a versatile digital asset for users across multiple networks.
Previously, PayPal’s cryptocurrency terms did not include Arbitrum as a supported blockchain, but an update to the company’s terms now lists it alongside Ethereum and Solana. This update, which was made on July 16, 2025, clearly indicates PayPal’s growing involvement in the decentralized finance space.
PayPal Launches PYUSD Rewards Program
In addition to the network expansion, PayPal has introduced the PYUSD Rewards Program for users who hold at least 1 PYUSD in their Cryptocurrencies Hub. Participants can earn passive yield on their stablecoin holdings, with rewards credited monthly.
The rewards will be calculated daily based on the amount of PYUSD held, applying an annual rewards rate divided by 365. This program is designed to incentivize long-term holders of PYUSD, giving users the opportunity to accumulate more PYUSD simply by holding the stablecoin in their PayPal account.
PayPal has outlined eligibility criteria for participation. To qualify for rewards, users must maintain a positive balance in their Cryptocurrencies Hub, ensuring there are no holds or restrictions on the account. This new program is expected to attract both individual users and businesses looking to maximize their PYUSD holdings.
Is PayPal Positioning PYUSD as a Key Crypto Asset?
As PayPal continues to push deeper into the crypto market, the expansion of PYUSD and the introduction of a rewards program signal the company’s commitment to offering more innovative solutions within the digital currency space.
The PYUSD stablecoin based on the US dollar deposits and short term treasuries is offered to provide users with a stable and safe alternative when being involved in the cryptocurrency transactions.
PayPal multichaining capability supports not only Ethereum but also Solana and Arbitrum, hence making the PYUSD a very practical, and acceptable digital currency by the market players.
In conclusion, the latest initiatives of PayPal and PYUSD would create a significant impact on the crypto space, mainly attributable to the introduction of a new rewards program and a new array of support on blockchain.
