TLDR
- PYUSD is now available on Arbitrum, joining Ethereum and Solana blockchains.
- PayPal users can earn daily PYUSD rewards by holding at least 1.0 PYUSD.
- Rewards are calculated using a daily rate and credited monthly to wallets.
- PYUSD is issued by Paxos; PayPal can end support without prior notice.
PayPal has expanded the reach of its stablecoin, PYUSD, by integrating it with the Arbitrum blockchain. At the same time, the company has introduced a new rewards program that allows eligible users to earn yield on PYUSD holdings.
The U.S.-based payment platform updated its cryptocurrency terms to reflect both the blockchain expansion and the new passive yield offering. PYUSD, issued by Paxos, is now supported on Ethereum, Solana, and Arbitrum, adding to its availability across leading smart contract platforms.
PYUSD Now Live on Arbitrum Network
PayPal confirmed that PYUSD is now fully operable on the Arbitrum blockchain. Arbitrum joins Ethereum and Solana under the list of PYUSD-supported chains. These supported blockchains allow users to send, receive, and hold the stablecoin across various environments with faster and cheaper transactions.
This expansion follows broader efforts to integrate PYUSD with decentralized networks and enhance utility beyond PayPal’s core ecosystem. By adding Arbitrum, a layer-2 solution on Ethereum, the company gives users more options for stablecoin transactions at lower network costs.
PYUSD’s inclusion on Arbitrum is part of PayPal’s continued effort to build support across multiple blockchain networks. The expansion may also improve user experience by increasing accessibility and transaction efficiency.
New PYUSD Rewards Program Launches
Alongside the blockchain integration, PayPal has introduced the PYUSD Rewards Program. According to updated terms, any user holding at least 1.0 PYUSD in their Cryptocurrencies Hub may qualify to earn stablecoin rewards. These rewards will be paid in PYUSD and calculated on a daily basis.
“The rewards will be accrued daily at the applicable PYUSD Rewards Rate,” stated PayPal in its announcement. “We apply a daily periodic rate to the average PYUSD balance held each day.”
The annual rewards rate is applied using a daily divisor of 365. The total earned PYUSD is then credited monthly or within 30 days after each month begins. Users have the option to exit the program at any time, after which no more yield will be credited.
This reward structure allows users to earn a passive balance without needing to perform additional actions beyond holding PYUSD in their PayPal wallet.
Eligibility Rules and Participation Requirements
To participate, users must have an active Cryptocurrencies Hub account with no negative balances or account restrictions. Accounts must also be free of limitations, ongoing reviews, or fund holds. The rewards program applies to both personal and business accounts that meet these conditions.
PayPal made it clear that users must continue to meet these requirements to remain eligible. If any condition fails, rewards may be paused or canceled. Business users are allowed to join under the same terms, provided there are no issues affecting account access or fund availability.
Participation is voluntary, and users are not required to enroll. The rewards are only calculated based on PYUSD held in PayPal’s Cryptocurrencies Hub, not in external wallets.
Paxos Issuance and Termination Clauses
PayPal reminded users that PYUSD is issued by Paxos Trust Company. As such, it is subject to Paxos policies and operational terms, not PayPal’s. PayPal also stated that it reserves the right to withdraw support for the stablecoin at its discretion.
“If we stop supporting PYUSD, users must sell or transfer their PYUSD tokens,” the company explained. “We are not obligated to give advance notice.”
Any PYUSD left in a user’s wallet after support ends must be removed or converted. Failure to do so may result in loss of access to the tokens if PayPal disables support.
This clause reinforces that control over PYUSD’s life cycle ultimately remains with PayPal and Paxos. Users are advised to monitor updates to the terms to avoid disruptions.
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