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Home News Blockchain

PayPal Expands PYUSD to Arbitrum, Launches Rewards Program for Holders

16 July 2025
in Blockchain, News
Reading Time: 3 mins read
107 2
source: neptunemutual.com

source: neptunemutual.com

PayPal’s stablecoin, PYUSD, has officially expanded to the Arbitrum blockchain while rolling out a new rewards program for users holding the token on its platform.

According to an update on the payments giant’s cryptocurrency terms and conditions, PYUSD is now supported on Arbitrum alongside Ethereum and Solana. These three networks currently serve as the supported blockchains for PYUSD transfers and holdings.

PYUSD rewards program 
Source: PayPal

In addition to its blockchain expansion, PayPal introduced a rewards initiative designed to incentivize users to hold the stablecoin. Under this program, any user with a balance of at least 1.0 PYUSD in their Cryptocurrencies Hub is eligible to earn passive yield. The rewards, calculated daily, are distributed monthly or within 30 days after the start of each month and paid in PYUSD at the applicable annual rewards rate.

PayPal explained that daily rewards are determined by applying a daily periodic rate—calculated by dividing the annual PYUSD Rewards Rate by 365—to the average daily balance of the user’s PYUSD holdings for each day of the month.

Participation is open to both individual and business Cryptocurrencies Hub accounts, provided they maintain a positive balance without holds, limitations, or restrictions. Users also retain the option to opt out of the rewards program at any time, forfeiting further yield credits from that point.

However, PayPal reminded users that PYUSD is issued by Paxos and thus governed by Paxos’ terms rather than PayPal’s. The company also noted it reserves the right to end support for PYUSD at any time, stating that it may do so without prior notice. In such an event, users would need to sell or transfer their remaining PYUSD tokens to an external wallet if PayPal ceases support for the stablecoin.

Additionally, PayPal is preparing to expand the utility of its PYUSD by launching it on the Stellar blockchain network pending regulatory approval from the New York State Department of Financial Services (NYDFS). 

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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Tags: ArbitrumPayPal
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