AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Ethereum News Today: PayPal Expands PYUSD Stablecoin to Arbitrum Network for Faster Transactions
Coin WorldWednesday, Jul 16, 2025 7:13 pm ET
2min read
Aime SummaryPayPal has expanded its U.S. dollar-backed stablecoin, PYUSD, to the Arbitrum network, a leading Layer 2 scaling solution for Ethereum. This move is aimed at providing users with faster and more cost-effective transactions. The update was revealed in PayPal's revised terms of service, which now lists Arbitrum alongside Ethereum and Solana as supported networks. This expansion is part of PayPal's broader strategy to enhance its stablecoin offerings across multiple blockchain networks, ensuring that users can experience seamless and efficient digital payments.
The integration of PYUSD with Arbitrum is significant as it leverages the Layer 2 network's capabilities to reduce transaction fees and accelerate blockchain processes. This benefit is particularly attractive to developers and users in the decentralized finance (DeFi) space, where speed and cost-efficiency are crucial. By deploying PYUSD on Arbitrum,
aims to make stable digital payments more accessible and straightforward for its users.PYUSD, issued by Paxos Trust Company, is backed by a mix of U.S. dollar deposits, Treasury bonds, and Treasury repurchase agreements. This backing ensures that the digital token maintains a stable value in relation to the dollar, providing users with a reliable medium for transactions. The stablecoin's expansion to Arbitrum follows its previous launches on the Ethereum and Solana networks, as well as its integration with LayerZero’s cross-blockchain bridging protocol. This cross-chain support enables PayPal customers to transfer assets seamlessly between different blockchains, enhancing the overall user experience.
PayPal's move to expand PYUSD to Arbitrum is not an isolated event but part of a broader trend in the financial sector. As stablecoins become more prevalent in both cryptocurrency and traditional finance, PayPal's strategy to expand PYUSD across faster and more efficient networks positions the company at the forefront of this evolving landscape. The stablecoin's support from major platforms, including Moonpay and FV Bank, further underscores its growing importance in the digital finance world. This expansion is a testament to PayPal's commitment to innovation and its vision for the future of finance, where stablecoins play a vital role in facilitating payments, transfers, and purchases.
In the updated terms, PayPal explicitly mentions Arbitrum in the list of supported networks of PYUSD alongside Ethereum and Solana. The update indicated that the minimum transfer should be one PYUSD. Each week, users are allowed to purchase up to $100,000 of PYUSD. They are also allowed to send crypto of up to $25,000 in a week. These restrictions assist in regulating the extent to which individuals will be able to relocate.
This growth is also linked to other alliances. In September 2024, Paxos, the issuer of PYUSD, collaborated with Arbitrum. They have developed a tokenization network. This previous collaboration facilitated the decision of PayPal to include Arbitrum in its stablecoin roadmap.
PYUSD first came out on Ethereum in August 2023. PayPal collaborated with Paxos to develop a stablecoin that people could rely upon in online shopping and payments. Later in May 2024, PayPal announced PYUSD on Solana. Another network that is fast and low-cost is Solana. Today, Arbitrum is the third network to have PYUSD, which demonstrates that PayPal is interested in its stablecoin being functional in all places where people require it to be.
PayPal and Venmo have also simplified the use of PYUSD for people. Users view a single balance of PYUSD. Whether on Ethereum, Solana, or Arbitrum, it does not matter. Individuals are capable of transferring funds to external wallets in any of the supported networks. This will make digital money less confusing and more practical for everyone.
This growth may assist in making more individuals believe in and utilize PYUSD. It gives room for more apps and services to add the stablecoin. It can also contribute to the growth of Arbitrum because more individuals will use its network to carry out daily payments and DeFi.
Ultimately, the move by PayPal indicates that the firm is keen on digital money. The inclusion of Arbitrum is empowering people with more options through PayPal. The mission is obvious: turn digital payments into simple, inexpensive, and secure. This may introduce stablecoins to the lives of more people in the future.
Sign up for free to continue reading
Unlimited access to AInvest.com and the AInvest app
Follow and interact with analysts and investors
Receive subscriber-only content and newsletters
or
By continuing, I agree to the
Market Data Terms of Service and Privacy Statement
Already have an account?
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
Comments
No comments yet