PayPal has added Arbitrum support for its PYUSD stablecoin

What’s new? Payment company PayPal has updated the terms and conditions of cryptocurrency services. They include information that the PYUSD stablecoin, issued by the US-regulated fintech company Paxos under the PayPal brand, has become available in the Ethereum-based Arbitrum Layer 2 (L2) network. Previously, the asset with a capitalization of $844,5 million was only available on the Ethereum and Solana networks.

PayPal’s terms of service

What else is known? The terms and conditions page on the company’s website was last updated on July 16, and according to the Wayback Machine, the previous archived version of the page, dated July 11, was missing Arbitrum. The “Transaction Limits” section now also contains information about PYUSD on Arbitrum, which was not previously the case.

PYUSD was launched in August 2023 as an ERC-20 standard token on Ethereum. The asset is fully backed by dollar deposits, short-term US Treasuries, and similar cash equivalents.

In May 2024, the stablecoin was expanded to Solana to popularize it as a means to trade and make daily payments.

Paxos itself, which issues PYUSD and its own USDP stablecoin, has expanded to Arbitrum in September 2024 to launch a tokenization platform.

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In June, PayPal announced the addition of Stellar network support for PYUSD.

At the time, PayPal CEO Alex Kriss said that the United States was still far from widespread adoption of stablecoins, as consumers had no real incentive to abandon existing payment systems.

While PYUSD has since spread to platforms such as mobile payment service Venmo, Kriss acknowledged that popularity among consumers depends on tangible benefits such as rewards programs.

In April, PayPal said it would begin offering a 3,7% annualized yield on PYUSD balances to incentivize its use. PayPal currently has only a 0,32% share of the $263,6 billion market in the $263,6 billion total capitalization stablecoin market, led by Tether’s USDT and Circle’s USDC.

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Earlier this month, a report for the US Securities and Exchange Commission (SEC) revealed that PayPal co-founder and Silicon Valley investor Peter Thiel indirectly owns a total of 5 094 000 common shares of blockchain company Bitmine Immersion Technologies (BMNR) through several affiliates. This represents 9,1% of the total number of outstanding securities.