PayPal Expands PYUSD Access to Arbitrum and Launches Holder Rewards

Highlights:

• PayPal has added support for PYUSD on the Arbitrum network after revising terms and conditions.
• Users holding at least 1 PYUSD in their Hub can earn daily rewards based on the average balance each month.
• PayPal may stop supporting PYUSD at any time, and users must move their tokens if support is no longer available.

PayPal has added support for the Arbitrum blockchain to its list of PYUSD-supported networks. This update appears in the company’s revised cryptocurrency terms and conditions. PYUSD is now available on Ethereum, Solana, and Arbitrum. These three chains offer users more flexibility in transferring the stablecoin across networks.

⚡️ JUST IN: PayPal to expand $PYUSD stablecoin onto Arbitrum, following its presence on Ethereum and Solana—also launching a rewards program for holders.#PYUSD #PayPal #Arbitrum #Stablecoins #CryptoAdoption 🤝 pic.twitter.com/t5RZxalmyj

— Bitcoin World News (@BitcoinWorldN) July 16, 2025

Arbitrum is known for its efficiency, especially when it comes to processing transactions with minimal fees. The launch opens more opportunities for users involved in decentralized finance. They can now interact with PYUSD across multiple chains that support higher speeds and better scalability.

PayPal appears to be aligning its stablecoin offering with blockchain networks that provide performance benefits. Ethereum remains a popular option, but Arbitrum allows users to avoid high gas fees. In contrast, Solana offers additional speed advantages. With PYUSD now on all three, PayPal strengthens its position in the digital payment space. Users can move the token where it suits them best without leaving the PayPal platform.

PYUSD Rewards Program to Offer Yield

In addition to expanding chain support, PayPal has introduced a rewards program for users holding PYUSD. The program applies to users who keep at least 1 PYUSD in their Cryptocurrencies Hub. Once eligible, users begin earning PYUSD rewards based on their daily average balance.

To calculate rewards, PayPal divides the annual rate by 365 and applies this daily rate to the average balance each day. At the beginning of the next month or within 30 days, the total reward amount is credited to the user’s Cryptocurrencies Hub. This system allows users to earn a passive yield as long as they maintain their balance above the minimum threshold. Users may opt out of the program whenever they wish, and they will no longer receive any yield.

PayPal has set clear conditions for eligibility. Users must have a Cryptocurrencies Hub account in good standing. Their balance must not be negative or have any limitations, fund holds, or restrictions. Business account holders can also take part in the program if they meet the same conditions. All participants need to maintain eligibility during the full reward period to receive credited PYUSD.

This rewards structure gives users a way to earn additional value from simply holding the token. However, participation remains optional, and users must manage their accounts accordingly. The expansion of the stablecoin comes months after the SEC ended its investigation into PayPal without enforcement action.

Paxos Terms Apply as PayPal Reserves the Right to End Support

PayPal also issued a reminder that Paxos, a major licensed payments institution, is the issuer of PYUSD. Therefore, all use of the stablecoin falls under Paxos’ terms, even when accessed through PayPal. Users must follow these terms as they apply to the stablecoin’s use.

The company noted it might end support for PYUSD at any time. In some cases, it will issue a notice before doing so. However, PayPal stated it does not always need to notify users. PayPal instructed users not to keep unsupported tokens in their Cryptocurrencies Hub. Any such assets must be removed after PayPal announces the change.