TL;DR

PayPal will expand PYUSD to Arbitrum, adding a third network after its initial rollout on Ethereum and Solana.
The integration aims to lower costs and improve transaction speed by using Arbitrum as a layer 2 solution on Ethereum.
Users will be able to use PYUSD across all three networks from a unified balance in PayPal and Venmo, without needing to manage separate blockchains.

PayPal will incorporate the Arbitrum network into its PYUSD stablecoin ecosystem, according to a recent update in its terms and conditions.

Until now, the stablecoin had only been available on Ethereum and Solana. With this expansion, the company aims to give users more flexibility, enabling them to operate across three different networks using a single unified balance.

Integrating Arbitrum will enhance PYUSD’s operational efficiency thanks to its design as a layer 2 solution on Ethereum. The network enables faster and cheaper transactions, making it an increasingly common choice for projects focused on scalability without stepping outside the Ethereum ecosystem.

PYUSD was launched in August 2023 and is issued by Paxos. Its value is pegged 1:1 to the U.S. dollar and backed by bank deposits, Treasury bonds, and repurchase agreements. The issuing entity, regulated by the New York State Department of Financial Services, had already begun working with Arbitrum in September 2024 to bring its tokenization platform to the network.

PayPal Goes Multichain: Adapting to Financial Fragmentation

The terms update not only adds Arbitrum as a supported network but also adjusts transaction limits to reflect this integration. Although PayPal has yet to announce it publicly, the changes are already active and visible in the service’s legal documentation.

Since its launch, PYUSD has been designed as a tool for digital commerce. PayPal and Venmo integrate it as a single balance, regardless of the blockchain the funds are on, making it easier to use for everyday payments and transfers to external wallets. Users will be able to choose between Ethereum, Solana, or Arbitrum without having to manage separate balances.

The multichain expansion of PayPal and PYUSD reflects the need to adapt to an increasingly fragmented financial system, where users demand speed, interoperability, and lower costs

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Filed under: News - @ July 16, 2025 4:29 pm