PayPal Expands PYUSD to Arbitrum for Faster, Cheaper Transactions

Coin WorldWednesday, Jul 16, 2025 6:57 am ET
1min read
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Aime RobotAime Summary

- PayPal expanded its USD-backed stablecoin PYUSD to Arbitrum, enhancing transaction speed and reducing costs for DeFi and dApps users.

- Previously limited to Ethereum's high-fee mainnet, the move leverages Arbitrum's scalability to boost adoption.

- The integration supports cross-chain operability, enabling seamless PYUSD use in wallets, lending platforms, and AMMs.

- This strengthens PayPal's position in digital payments and advances crypto's mainstream adoption.

PayPal has announced the expansion of its U.S. dollar-backed stablecoin, PYUSD, to the Arbitrum network, a leading Layer 2 scaling solution for Ethereum. This strategic move is designed to enhance the speed and cost-effectiveness of transactions using PYUSD, particularly for users interacting with decentralized applications (dApps) and decentralized finance (DeFi) services. Until now, PYUSD was exclusively available on the Ethereum mainnet, where high gas fees and slower processing times have been barriers to widespread adoption. Arbitrum, on the other hand, offers significantly lower transaction fees and faster processing times, making it a more practical and efficient option for stablecoin transactions.

The stablecoin is issued by Paxos Trust Company and is backed 1:1 by U.S. dollar reserves, ensuring trust and regulatory compliance. This expansion to Arbitrum signals PayPal's deeper commitment to blockchain technology and its integration into everyday financial services. The move allows users to transfer PYUSD across different networks more seamlessly, which is crucial as cross-chain operability becomes increasingly important for the next phase of crypto adoption. This integration is expected to encourage broader use of PYUSD in DeFi applications, where low fees and speed are essential. Developers building on Arbitrum can now easily integrate PYUSD into wallets, lending platforms, and automated market makers (AMMs), thereby enhancing the utility of both the stablecoin and the network.

The decision to expand PYUSD onto Arbitrum is part of PayPal’s broader strategy to enhance stablecoin functionality and compete with other dollar-pegged assets like USDC and USDT. As stablecoins continue to play a central role in the crypto economy, being available on scalable networks like Arbitrum becomes a major advantage. This move strengthens PayPal's position in the growing digital payments space and brings crypto one step closer to mainstream adoption. By making PYUSD more accessible and efficient,

PayPal
aims to boost DeFi adoption and user access, further integrating blockchain technology into everyday financial transactions.

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